(KANSAS CITY, Mo.) Sept. 7, 2010 – Startups and young companies dominate net job creation in the United States – and have done so for the last 30 years. This economic phenomenon occurs because of the patterns of firm formation and survival, according to a report released today by the Ewing Marion Kauffman Foundation.
While the extraordinary contribution of jobs from new and young firms often is treated as something unique to these firms, this study, Neutralism and Entrepreneurship: The Structural Dynamics of Startups, Young Firms and Job Creation, reveals some measure of structural order behind that reality. However, the study points out that forces creating this structure are subject to change. Recent shifts – including the declining cost of company creation in information technology and other sectors, and lower investment thresholds for seed-centric acceleration programs – indicate that we could very well be on the cusp of one such change: an increase in new company creation in certain sectors of the economy.
To read the full, original article click on this link: Causes for Firm Formation and Job Creation Reveal Keys to Growing Economy, According to New Kauffman Study