Friday, September 14, 2012

Startup Companies and Job Creation

Following up on last week's "The Death of IPO's and What it Means for You and The Country".
From Felix Salmon at Reuters:

Job creation: Where are the startups?
Tim Kane, at the Hudson Institute, has a new paper out with a simple title: “The Collapse of Startups in Job Creation”. His paper is basically a slightly politicized version of the charts put out by the Bureau of Labor Statistics last month, under the headline “Entrepreneurship and the U.S. Economy”. The first two charts are particularly striking. The first one looks at the number of startups in America — companies less than one year old.
This shows a reasonably steady rise in entrepreneurship from 1994 to 2006, then a collapse as the housing bubble bursts, and — most worryingly of all — no recovery at all after the recession ends. Instead, we have significantly fewer startups right now than we did even at the depths of the recession....MORE
HT: FT Alphaville's The closer post.