The Ewing Marion Kauffman Foundation recently released a report that shows the importance of startups in job creation in the US. An analysis of the Business Dynamics Statistics data from the United States government revealed that firms that are less than twelve months old are the main driving force behind job growth during the years covered by the data.
Collectively, startup companies create 3 million jobs in the country each year during their first year of founding. In contrast, existing companies that are a year or older lose a net total of 1 million jobs per year.
The paper also highlights that many policies in place today only focus on big news like massive layoffs from a single firm or national unemployment rates. On the contrary, the policies should be studied again and based on realistic models of employment growth.
Building up startups organically is crucial in keeping people employed through these tough times. So what are you waiting for? Get going on that startup you’ve been sitting on!