Small busimess

The phrase, small businesses create the new jobs is not entirely correct. It is more accurate to say new business creates jobs. Back in my time it was the big companies like General Motors that caused job creation because when they made profits they would build new factories to produce more product, but all that changed about 30 years ago. The big companies realized that it was more efficient to purchase an existing business rather than building a new business. They had readymade production facilities, well trained personal and no problems with government regulations. It was especially effective when they bought up competitors. A whole new division sprung up called mergers and acquisitions. New business must build new plants, hire and train new people and deal with regulations and the successful ones make it through this maize and become targets for big business. In recent years new tech startups have been purchased and made the entrepreneurs very wealthy. Lowering taxes and reducing regulations will encourage even more new businesses to start. This along with venture capital coming from hedge funds will spur more growth. New business will spur economic growth which will in turn provide more income for the government in the form of taxes and thus help many who are in need. This is a more efficient approach than having the government offer assistance directly to those in need.