A new study published in the Harvard Business Review shows government support of small firms ends up being a drain on the economy.

The authors show that government loan guarantees for small businesses have the effect of depressing income growth, according to a study of 3,035 U.S. counties from 1980—2009. Shockingly, study found small firms tend NOT to be engines of growth. 

Here’s My Two Cents: The interconnections between small and large businesses within a regional economy are (more…)