Time to think big to close America’s small business productivity gap
McKinsey Public & Social Sector Insights
DECEMBER 19, 2024
Small businesses are the backbone of the American economy, employing nearly 60% of workers and contributing almost 40% to the nation's value-added output. Accounting for 34,752,434 companies, 99.9% of all American companies are small businesses. However, micro, small, and medium-sized enterprises (MSMEs) in the U.S. are only half as productive as large companies, a stark contrast to the 60% productivity ratio seen in other advanced economies, according to research by my colleagues at the McKinse
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