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Job Growth Driven by Startups
A new Kauffman Foundation Study suggests that startups are an extremely powerful driver of U.S. job growth. Over the past 20 years, start-up enterprises accounted for roughly one-quarter of gross job creation even though they employed less than 10% of the workforce. InvestMaryland is the Administration’s 2011 legislative proposal designed to fuel growth in state start-ups by stimulating investment in the Maryland Venture Fund. Follow InvestMaryland on Facebook.
The study, The Importance of Startups in Job Creation and Job Destruction, bases its findings on an analysis of a Business Dynamics Statistics (BDS), a new dataset compiled by the U.S. Census Bureau, which allows unprecedented tracking of the annual number of new businesses. While older firms lose more jobs than they create, those gross flows decline as firms age. On average, one-year-old firms create nearly one million jobs, while 10-year-old firms generate 300,000. Complete story.
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