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Tag >> entrepreneurs
Let's face it. Seemingly every day another piece of data is reported that suggest the economy is on the road to recovery...except for jobs.
Sure the unemployment rate is down to 8.9 percent, the lowest level since April of 2009 as 192,000 jobs were added last month. Also, the December and January new jobs numbers were revised upward by a total of 58,000 jobs.
With money starting to once again flow back into the technology space, investors are keen to get in on the ground level of new technology–and find that next Facebook or Google.
They are, of course, investing with caution. However, one of the key mechanisms that has long helped fuel such development has been the incubator model–where entrepreneurs can enter an intensive incubator program, get access to potential funding, and valuable education and advice to help them move along a start-up idea.
The number of women-owned businesses has been skyrocketing for the past 30 years, and new enterprises now are twice as likely to be started by women as men. However, revenues for men-owned businesses continue to outstrip that of women-owned businesses by almost 75 percent, according to a report by Sharon Hadary, founding executive director of the Center for Women's Business Research and adjunct professor at the University of Maryland University College.
Hadary’s report, which appeared in the WSJ on Sunday, cited Kaufman Foundation research, US Census of Women-Owned Business data, and Center for Women’s Business Research statistics showing the total number of women-owned private businesses in the US doubled between 1992 and 2006 – from 5.4 million to 10.4 million.
With all the talk lately about how small businesses are vital to job creation, turns out it's a relatively small number of high-growth entrepreneurial firms creating much of that employment. And, now, there's pending legislation, pushed heavily by venture capitalists, that could encourage the growth of such companies.
First, about those high-flying startups. According to recent research from the Ewing Marion Kauffman Foundation , fast-growing relatively young firms generate about 10 percent of all new jobs in any given year. That includes what the study calls "gazelle" firms--enterprises three to five years old. And, these ventures create all those jobs even though they're less than 1 percent of all companies. The average firm in the top 1 percent contributes 88 jobs per year; most end up producing between 20 and 249 employees. The average firm in the economy as a whole adds two or three net new jobs each year.
One of those silver lining stories you read a lot is that recessions are prolific times for startups. Cheer up, world! Things may be awful, but at least we know there are tons of innovative new companies being created.
Only, it's not true, according to new research. A pretty thorough study released by the Ewing Marion Kauffman Foundation found that, contrary to popular wisdom, the number of new companies created in the U.S. has been pretty consistent over time.