3/10/2010 9:00:00 AM
My colleague, Dane Stangler, has a new report out today in Kauffman's series looking at business dynamics. Today's report, High Growth Firms and the Future of the American Economy
, is a really easy and compelling read highlighting the importance of considering new and young firms as the United States works to advance job growth. Anyone who read Dane's piece from last fall, Where Will the Jobs Come From
, will enjoy this addition as well.
What I like best about Dane's new report is that it doesn't gloss over really complicated topics like change and the nature of competition between entering businesses and established businesses. It also provides good statistics on the nature of growing businesses in 2007 such as:
- "Gazelle" firms (ages three to five years old and fast growing) comprise less than 1 percent of all companies, yet generate roughly 10 percent of new jobs in any given year.
- The "average" firm in the top 1 percent of the growth distribution contributes 88 jobs per year. The average firm in the economy as a whole, on the other hand, adds two or three net new jobs each year.
The report goes on to offer a series of policy recommendations for officials working to promote this population of businesses.