Fundamentals of Management, 8th ed

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Part 2: Planning

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25.5 percent of U.S. workers are employed by firms with 100 to 499 employees, and another

20.3 percent work for businesses that employ 500 or more total employees.

On the basis of numbers alone, then, small business is a strong presence in the econ-

omy, which is also true in virtually all of the world’s mature economies. In Germany, for

example, companies with fewer than 500 employees produce two-thirds of the nation’s

gross national product, train nine of ten apprentices, and employ four of every five

workers. Small businesses also play major roles in the economies of Italy, France, and

Brazil. In addition, experts agree that small businesses will be quite important in the

emerging economies of countries such as Russia and Vietnam. The contribution of

small business can be measured in terms of its effects on key aspects of an economic

system. In the United States, these aspects include job creation, innovation, and importance

to big business.