High Growth Firms Key to Creating New Jobs and Reducing Unemployment
High growth firms don't contribute much to job creation compared to small and medium-sized firms. Studies show that SMEs are more important for creating new jobs. There are different opinions on how job contributions from small firms are spread out. In Sweden, high unemployment in the late 1990s might be due to not enough new firms starting up. The lack of growing firms in the Swedish economy could also be a reason for not enough new jobs being made.