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Tag >> Startup Via bill
Mar 22
2010

It's really high-flying startups that create many new jobs

Posted by annearf in venture capitalstartupsStartup Via billIn complianceentrepreneurs

annearf

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. 





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