For policymakers who are focused on jobs, jobs, jobs, a new Kauffman Foundation study has the answer: startups, startups, startups.
When it comes to creating new jobs, startup companies are the source, according to the study titled The Importance of Startups in Job Creation and Job Destruction.
The study bases its findings on the Business Dynamics Statistics, a U.S. government dataset compiled by the U.S. Census Bureau that tracks the annual number of new businesses (startups and new locations) from 1977 to 2005, and defines startups as firms younger than one year old.
Read more about this study of job growth and destruction patterns at both startups and existing firms.
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2 comments:
Great article. Some supporting statistics would have been interesting. Example: Unemployment rate to startup rate trends.
Historical the strinking of the workforce due to economic downturn leads to startup growth. Displaced workers tend to "go it alone".
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