Which of the following statements is true about the growth of small businesses in the past 30 years?

• A. Large corporations have consistently outpaced small businesses in terms of new business formation.
• B. Small businesses have had little impact on innovation and competition.
• C. Small businesses have played a significant role in job creation and economic growth.
• D. The number of small businesses has steadily declined due to increased market concentration.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the role of small businesses in the economy by reviewing their contributions to job creation, innovation, and competition over the past 30 years.
2. Step 2: Analyze data or studies that compare the rate of new business formation between large corporations and small businesses to evaluate which group has been more active in starting new enterprises.
3. Step 3: Examine the impact of small businesses on innovation and competition, noting how they often introduce new products, services, and business models that stimulate market dynamism.
4. Step 4: Investigate trends in the number of small businesses over time, considering factors such as market concentration and regulatory changes that might affect their growth or decline.
5. Step 5: Based on the evidence from the above steps, identify which statement accurately reflects the historical role and growth pattern of small businesses, focusing on their significance in job creation and economic growth.