If you’re interested in job creation—and who isn’t these days?—you should talk to someone like Morris Panner. In 1999, Panner and some others started a Boston software company called OpenAir. By 2008 they sold it for $31 million. The firm had then grown to about 50 workers. It turns out that entrepreneurship (essentially, the founding of new companies) is crucial to job creation. But as Panner’s experience suggests, success is often a slog.
What’s frustrating and perplexing about the present job dearth is that the U.S. economy has long been a phenomenal employment machine. Here’s the record: 83 million jobs added from 1960 to 2007, with only six years of declines (1961, 1975, 1982, 1991, 2002, 2003). Conventional analysis blames today’s poor performance (jobs are 7.6 million below their pre-recession peak) on weak demand. Because people aren’t buying, businesses aren’t hiring. Though true, this omits the vital role of entrepreneurship.
To read the full, original article click on this link: Samuelson: Startups Create Most New Jobs - Newsweek
Author: Robert J. Samuelson
