New businesses do more to fix economy than small businesses

When it comes to job creation, young businesses hire more workers than small businesses, says a new report out from Bank of America. The report contradicts the common political mantra that we need to get small businesses hiring in order to fix the economy. Labor data shows that startup companies are, in fact, the ones that drive hiring, creating 20 percent of all new jobs. However, now is a bad time for these small companies. This is partially due to the housing market, as new business owners take out home equity to support their new enterprise.

New York Times Wall Street and finance reporter, Louise Story explains the new report, which shows that the economy would benefit from initiatives to support new businesses.