We all get it that all companies, large and small, create new jobs, and take jobs away. But not all of us are on the same page regarding the importance of start-up companies. A study released today by the Ewing Marion Kauffman Foundation shows that net job growth occurs in the U.S. economy only through start-up firms. The study, The Importance of Start-ups in Job Creation and Job Destruction, states:
on average and for all but seven years between 1977 and 2005, existing firms are net job destroyers, losing 1 million jobs net combined per year. By contrast, in their first year, new firms add an average of 3 million jobs.
The bottom line? We focus on helping in unemployment or layoffs but not in start-ups. But the data from this report suggest that growth would be best boosted by supporting start-up firms.
For more, check it out.