entrepreneurshipTop of Mind

Commentary & Insights on Entrepreneurship The Top of Mind blog brings an array of editorial views to current events shaping the world of entrepreneurship. Engage, exchange, and expand your own view of the world!

RSS Feed Link

Startup Jobs Dropping

Thom Ruhe on October 8, 2012 Source: e360 Blog

The following post by Mark Marich is from our Policy Forum blog. Weigh in on the discussion about what it will take to turn this around. 

Startup Jobs Declining

A recently released briefing paper by the Hudson Institute shows job creation from new firms at an all-time low. “The Collapse of Startups in Job Creation” paints a bleak picture where the number of new firms being created today is even smaller than two years ago when the worst of the recession ended.

The findings are consistent with a 2011 report from the Kauffman Foundation, “Starting Smaller; Staying Smaller: America’s Slow Leak in Job Creation.”

The new Hudson paper contrasts the rate of job creation from new firms over the last four presidencies. During President George H.W. Bush’s single term in office, there were 11.3 startup jobs per 1,000 people. That rate dropped to 11.2 under President Clinton, 10.8 under President George W. Bush, and now sits at 7.8 for President Obama.

The paper’s author, Tim Kane, suggests that stricter labor policies since 2009 are at the root of the most recent drop—and pushing jobs overseas. Specifically, he points to the passage of the Affordable Care Act coupled with an IRS ‘crackdown’ on companies who reduce the financial burden of mandatory employee benefits by leaning on part-time employees and contractors are driving jobs.

Tags:  Hudson Institute

  • 1
comments powered by Disqus

Twitter Updates

  • Why should American entrepreneurs care about immigration reform? Our @JwIeNz explains http://t.co/UFWByaV4Ml
  • RT @BigKansasCity Learn more about each of 15 speakers who will share their stories with Big KC attendees. http://t.co/w5SnFPhP9o
  • Why startups should focus on growth rather than revenue http://t.co/cnxDwwTe58
  • Agreed! Funding is not always the answer RT @greatscottnyc stop saying, “I need to find an investor.” How about making some sales first?
  • RT @1MillionCupsKC: Welcome to the family, @1MillionCupsFAY! Good luck with your first #1MC--and let us know if there's anything we can do …

Email Newsletters

Want to be up-to-date with the latest news and updates from Entrepreneurship.org? To subscribe, just give us your email address below; you'll choose which e-newsletters you'd like to receive on the next screen.