On Kansas.com: Young Firms Drive Kansas Job Creation
While small businesses make up the majority of firms in every state, they employ a small share of the state's population.
Large firms, on the other hand, employ many workers, but there are few big companies in each state.
In a Wichita Eagle op-ed, Dane Stangler and Jason Wiens of the Kauffman Foundation highlight the importance of yet another category of businesses: young firms. These companies are responsible for the creation of nearly all net new jobs.
In their editorial, Stangler, Kauffman research and policy vice president, and Wiens, lead policy engagement manager, discuss the effects newer firms have on economic stability and job growth in Kansas.
They also mention the policy implications this sector of businesses has on matters such as licensing laws and tax incentives.
Read an excerpt from the post below.
Young Companies Are the Job Creators
It turns out that the steadiest contributor of net new jobs in Kansas is young firms. Every year from the early 1980s right up to the brink of the recession, young firms contributed between 10,000 and 20,000 net new Kansas jobs.
Much of that job creation came from fast-growing young firms, those expanding from a handful of employees to 50 or 75 in a few years.
These numbers have two major policy implications. First, the governor, Legislature and other state officials need to think about job creation according to firm age, not just firm size.
For example, income taxes are often less of an issue than employment and property taxes. And it's not necessarily the level of taxes but the complexity of the tax code that vexes young companies.
Read the rest of the post on Kansas.com to find out more.