Startups Create Jobs
04/29/2011 | | econ70.com, Elliot's Brief Blog, Graphsandaughs.net, job growth, Mature Companies, New Firms, New Jobs, Small Business, Startups
The perception is that small business creates most new jobs. NO! The best predictor of job creation is age of firm. Younger firms create more jobs regardless of size. New firms operate in a volatile “up or out” environment. After 5 years many young firms fail. But, those that survive continue ramping up and grow faster than mature firms. Startups account for 3% of employment but 20% of job creation