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New Businesses Mean New Jobs, The Kauffman Foundation Reports
Written by Jenna Weiner
The Kauffman Foundation reports that new businesses generate the most job opportunities in economic hard times.
The Kauffman Foundation reports it's out with the old and in with the new businesses for job creation, which could be good news for small business owners with burgeoning companies.
The Kauffmann Foundation released a study suggesting the age of a firm demonstrates the strongest link to the number of jobs generated, with newer firms creating a higher average number of jobs than their older counterparts.
The study's authors believe this means young businesses will be key to economic recovery. "Job creation is the number one issue facing families and policymakers during this economic recession, and this study shows that new businesses and entrepreneurs are the key factor in adding new jobs," said Carl Schramm, president and CEO of the Kauffman Foundation.
The Kauffman Foundation hopes the results will garner governmental support for developing businesses. "This study sends an important message to policymakers that young firms need extra support in the early years of formation so they can grow into viable job creators," said Robert Litan, vice president of Research and Policy at the Kauffman Foundation.
Start-up support could be particularly helpful for small business owners; the SBA estimates 627,200 new small employer firms began operations last year.
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