One can never speak enough about the importance of business start-ups, especially in this time in our American lives. More than ever, the statistics tell the story best:
New firms—those no more than five years old—over the past three decades have been responsible for virtually all of the net new jobs created in the U.S. economy
The top 1 percent of all companies generate 40 percent of new jobs, and the vast majority of these firms are no more than five years old.
Economist Tim Kane documented that net job growth occurs in the U.S. economy only through startup firms. While older companies lose 1 million jobs annually, new firms add an average of 3 million jobs in their first year.
Moreover, during recessionary years, job creation at startups remains stable, while net job losses at existing firms are highly sensitive to the business cycle. As the news release for this study stated: “When it comes to U.S. job growth, startup companies aren’t everything. They’re the only thing.”
This report and others are a continued call for the entrepreneurial spirit.