Robert Fairlie, chair of Public Policy at UCLA Luskin, spoke to the Wall Street Journal about “pint-size startups,” new business ventures that are operating with relatively lean staffs. While the number of people taking initial steps to launch a business surged during the pandemic, the average number of employees they hired fell sharply. Reasons for this trend include pandemic-related headwinds that have slowed hiring and entrepreneurs’ decision to keep operations small to maintain a healthy work-life balance. Keeping head count down can make it easier for young businesses to adapt to the ups and downs of the economic cycle, Fairlie said. “At some stages of growth for a small business, it can be pretty valuable. They have that flexibility,” he said. “At some stages of growth, it will hurt them.” Contractors tend to be less loyal than full-time employees, who are more likely to be committed to a company’s success, Fairlie explained.