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New MIT Study: Big Data Disproportionately Benefits Large Companies

Submitted by on November 6, 2018 – 11:17 pmNo Comment

Across the corporate world, small companies are struggling and large ones are thriving. Over the last three decades, the annual rate of new startups has fallen from 13% to less than 8%. Meanwhile, the revenue share of the top 5% of businesses has increased 10 percentage points since the 1980s. What accounts for this discrepancy?

Big data vs. Small Data

One possible explanation, according to a new study by MIT Sloan School of Management’s Maryam Farboodi, is rooted in the growth of Big Data. The study posits that Big Data, which refers to the immense amount of digital information we generate and have an increasing ability to store and manipulate, disproportionately advantages large companies over small ones.

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