Economy lost more than 200,000 small businesses in recession, Census shows Published July 26, 2012
FoxNews.com
- July 19, 2012: Job seekers line up to speak to a recruiter during a job fair in Irving, Texas. (AP)
More than 200,000 small businesses vanished between early 2008 and 2010 -- a period covering the Great Recession and its immediate aftermath -- taking with them in excess of 3 million jobs, according to Census figures which illustrate the depth of the country's economic hole.
Data is only available until 2010, but the U.S. Census Bureau stats reveal a startling slide for America's businesses. While the country boasted 5.14 million firms with up to 99 employees as of March 2008, that number dropped to 4.92 million by March 2010 - representing a loss of roughly 223,800 businesses and 3.1 million workers.
The Obama administration notes that the trend has since reversed, and that the country has seen 28 consecutive months of private-sector job growth.
But a recent slowdown in private-sector hiring has raised questions about the direction and strength of that recovery. And amid an escalating campaign trail battle about President Obama's recent remarks on businesses, a new poll shows American business owners are harboring serious doubts.
The Gallup poll released Thursday showed business owners are among those with the most negative views of the Obama administration. The national poll showed just 35 percent of them approve of Obama's job performance, while 59 percent disapprove. Among all workers, participants in the survey were split 47-47 percent.
A definitive figure on how many small businesses closed during the recession is hard to come by. While the recession technically started in December 2007 and ended in June 2009, the Census figures only count the number of businesses starting in March of each year. If one looks at the stretch between March 2007 and March 2010, the loss of businesses with 99 workers or fewer is even more pronounced -- with a loss of 273,316 firms. The definition of a "small business" is also flexible, but FoxNews.com looked at those with fewer than 100 workers.
The Obama administration frequently says that despite modest growth since 2010, the economy still has a long way to go to recover from the pain of the recession.
Republicans, though, have hammered the administration for policies they claim have hurt, or will hurt, America's businesses including environmental regulation and the health care overhaul.
The president's recent "you didn't build that" remark has also stoked accusations that Obama is giving too much credit to government and relying too much on government to revive the economy.
"If you were successful, somebody along the line gave you some help," Obama said earlier this month. "There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges. If you've got a business, you didn't build that. Somebody else made that happen."
The president claims his remarks have been taken out of context and that he was just referring to the fact that businesses didn't build roads and bridges.
Obama campaign spokeswoman Jen Psaki told Fox News that Obama has a record of fighting for small businesses, and he was only talking about the importance of working together.
"The proof is really in the pudding here. What has he done? What does his record say about how much he cares about making sure small businesses and entrepreneurs ... are getting the help that they need?"
But for days, Romney and other Republicans have hammered the president and claimed he was talking about the businesses themselves.
The Romney campaign released two new web videos Thursday focusing on the remarks. In one, a Nevada business owner challenges Obama over the comments. The other includes several business owners sharing their stories about businesses they started.
"I think the reason that the Obama campaign is responding ... is because they believe that he screwed up and really told the truth about what he truly believes," Romney senior adviser Kevin Madden told Fox News.
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