A group has emerged as the champions of recovery from the recession —small businesses.

“It’s SMBs (small/medium businesses) that create new markets and push large firms and companies,” said Caleb Manscill, vice president of marketing at Search Clicks. “It’s SMB attitude that pushes our economy into deeper financial prosperity.”

According to a recent study by the Kauffman Foundation of Entrepreneurship, companies younger than five years old created almost two-thirds of the new jobs in 2007.

“If the U.S. economy is going to have a sustained recovery, it will be up to the entrepreneurs to lead the way,” said Carl Schramm, president and CEO of the Kauffman Foundation.

Manscill cited the book “The Innovator’s Dilemma,” which suggests big companies are too established to innovate and create.

“Large companies have a difficult time adopting or creating new technology or new ways of doing things because innovation could destroy their profits in a few different ways,” he said. “Many mammoth companies have been pushed aside because SMBs were willing to take on the risk of innovation and new thinking.”

Provo’s business climate is conducive to small businesses.

“Provo is a very favorable place for small businesses to start,” said Roger Andrus of the Business Development Corporation of Provo. “I don’t think there’s ever been a better time to get the resources and go out and start a business.”

Part of that success can be traced to the state government’s efforts to create more jobs.

“Because of the legislature’s efforts to provide growth capital to the state’s growth companies, Utah innovation leaders have access to much-needed capital and relationships in this time of sustained economic challenge,” said Jeremy Neilson, managing director of the Utah Fund of Funds, in a statement. 

Although SMBs are getting credit for their rescuing role in the recession, big companies still have a role to play. 

“The growth of large companies is seen as a gauge for the economic climate,” Manscill said. “They have a certain leeway and flexibility within the world that SMBs will never have.” 

When big businesses are thriving, the economy is thriving. When big businesses aren’t thriving, small businesses save the day.