The economic importance of new firm formation in the United States cannot be overstated. Startups and young companies dominate net job creation in the United States—and have done so for the last thirty years.
Kauffman research shows that net job growth comes almost entirely from firms less than five years old. These firms create more net new jobs than their older counterparts, as well as a higher average number of jobs per firm. On average, one-year-old firms create nearly one million jobs, while ten-year-old firms generate 300,000.
Following are recent studies that build the case for the importance of new firms in creating jobs:
From the Firm Formation Series