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.
from Reuters Money:
Deborah Ramsey went to work straight out of high school in the 1970s, working her way through the now-familiar rounds of layoffs, promotions and job changes at a series of banking, insurance and consulting companies in Philadelphia, her hometown. “I did my bit,” she recalls.
from Felix Salmon:
Lending to small businesses is often a spectacularly good way of creating jobs -- and almost always creates more jobs per dollar spent than any kind of infrastructure investment. One can argue at length about just how many dollars it costs to create one job in the infrastructure field, but whatever numbers you come up with, they're going to be much higher than, say, the numbers that Linda Levy, the CEO of Lower East Side People's Federal Credit Union, gave me for our small-business lending. (I'm on the board there.)
As any small business owner knows, getting a new company off the ground requires a lot of work. And for those entrepreneurs not enamored with the idea of running their company as a one-person show, hiring employees is among the first steps along the way to actually making it happen.