How Important Are Startups to the Economy?
For all the talk of small businesses and startups driving the U.S. economy, just how important are they? According to new data from the Kauffman Foundation and the U.S. Census Bureau, without the jobs they create, yearly employment growth would be negative.
Startups accounted for three percent of total employment from 1980-2005, which seems a modest number. But given that the average annual net employment growth over the same period was 1.8 percent, the data suggest without the jobs from new firms, employment growth would be negative.
Micro firms with one to four employees were especially significant, accounting for an average of 20 percent of new jobs each year. Read full story:
Technorati Tags: Inc. Magazine,Kelly Faircloth,Kauffman Foundation,U.S. Census Bureau,Robert E. Litan,John Taylor,National Venture Capital Association,NCET,Nevada’s Center for Entrepreneurship and Technology
…
