Startups Critical for Job Creation in U.S.
In the midst of record unemployment, a new Kauffman Foundation-funded U.S. Census Bureau study suggests that the answer to economic recovery lies within startup companies. The Business Dynamic Statistics (BDS) indicate that without job creation from new firms, the U.S. net employment growth rate is negative on average.
“Job growth is essential for our economy to rebound, and this study shows that new firms have historically been an important source of new jobs in the United States,” said Robert E. Litan, vice president of Research and Policy at the Kauffman Foundation, which funded the BDS. “Our research into the early years of business formation consistently shows how vital new firms are to our economy, and this data should give policymakers and budding entrepreneurs alike great hope for how we can solve our current crisis—create and grow jobs through entrepreneurship.”
This report is the first of three study briefs to be released that highlight BDS data; the next reports will be released later in January and February 2009.