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Smallest Startups Are Biggest Job Creators

While elected officials have long extolled the virtues of the small business and its powers of job creation, more attention has been paid recently to the age of firms instead of the size. But what happens when you mix the two and look at the smallest new startups? That is where the real growth happens. Since the late 1970s, new companies with 1 – 4 employees accounted for 86% of new firms. During roughly that same time period, startups with 1-4 employees have created more than 1 million jobs per year while those with 5 – 9 employees have created 500,000 per year. The figures come from the latest Business Dynamics Statistics report from the Kauffman Foundation.

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Mark Marich
on August 12, 2013
Category:  General 
Young Firms Lead Economic Recovery

A new report from the Kauffman Foundation reveals that the pace of recovery in hiring and job creation since 2008 is stronger in newer firms – those two years old or younger – than in more established companies. Job Creation, Worker Churning, and Wages at Young Businesses is the seventh report in a series using data from the U.S. Census Bureau’s Business Dynamic Statistics.

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Mark Marich
on December 03, 2012
Category:  General 
Where Have All the New Firms Gone?

At a time when policymakers throughout the U.S.--and all over the world for that matter--are pointing to the job creating power of entrepreneurs and small business owners, a new study from the Kauffman Foundation points out a worrisome trend. The nation's business startup rate fell below 8 percent for the first time in 2010, marking the lowest point on record for new firm births.

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Mark Marich
on May 07, 2012
Category:  Growth & Poverty 
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