Government can have a healthy role in spurring job creation, so long as the labor unions influence is heavily restrained and the main goal is to cut bureaucracy, deregulate, and limit red tape keeping business from entry or keeping them from expanding.
All new job creation, as Kauffman is pointing out, comes from firms that are less then 5 years old.
We have a 14 year high of firm creation, but now most of these firms are 1 person firms whereas in the pats they were able to bring people in. Tax rates, health care, and government bureaucracy need to be addressed to allow these firms to rehire those former employees or bring new ones on board.
For further study on the matter, visit: http://www.realclearmarkets.com/topic/e ... ch_papers/
Facts on entrepreneurship from Kauffman
1.) More than half of the companies on the 2009 Fortune 500 list were launched during a recession or bear market, along with nearly half of the firms on the 2008 Inc. list of America’s fastest-growing companies.
2.) Ninety-two percent of Americans say entrepreneurs are critically important to job creation; 75 percent think the United States cannot have a sustained economic recovery without another
burst of entrepreneurial activity.
3.) Think tech companies are founded only by 20-somethings? Think again. The average age of U.S.-born tech founders when they started their companies was 39. In fact, twice as many were older than 50 as were younger than 25.
4.) From 1980-2005, firms less than five years old accounted for all net job growth in the United States.
5.) Entrepreneurs are the answer. Seventy percent of U.S. registered voters think the health of the economy depends on the success of entrepreneurs.
6.) Let’s hear it for the next generation. Four in ten U.S. young people ages 8 to 21 have or would like to start their own business someday, and 63 percent agree that they have the ability to successfully start their own business.
7.) Contrary to popularly held assumptions, the highest rate of entrepreneurial activity belongs to the 55–64 age group over the past decade. The 20–34 age bracket has the lowest.
8.) Most high-tech founders come from middle-class or upper-lower-class backgrounds, are well-educated, and married with children.
9.) Only 16 percent of the fastest-growing and most successful companies in the United States had venture investors.
10.) Angel investors participating in organized groups achieve an average 27 percent internal rate of return.
11.) More than a quarter of technology and engineering companies started in the United States from 1995 to 2005 had at least one key founder who was foreign-born.
12.) Foreign nationals residing in the United States were named as inventors or co-inventors in 25.6 percent of international patent applications filed in the U.S. in 2006.
13.) Americans think the government does little to encourage entrepreneurship, despite its importance; 58 percent of respondents say the government should do more to encourage individuals to start businesses, and 35 percent think the laws in America make it more difficult to start a business.
14.) Thirty-eight percent of respondents believe tax cuts and 31 percent believe incentives for small business will encourage entrepreneurial activity.
15.) In 2008, the immigrant rate of entrepreneurial activity—0.51 percent—was substantially higher than the native-born U.S. population—0.28 percent.
16.) In 2007, an average of 0.30 percent of adults created a new business each month, equaling about 495,000 new businesses per month.
17.) Nearly half—45 percent—of startups were established in the same state where U.S.-born tech founders received their education.
18.) What do Microsoft, Disney, Genentech, McDonald’s, Southwest Airlines, Johnson & Johnson and Krispy Kreme all have in common?
All were founded in recessions, depressions or bear markets.
19.) Entrepreneurs are the answer. Seventy percent of U.S. registered voters think the health of the economy depends on the success of entrepreneurs.
20.) Let’s hear it for the next generation. Four in ten U.S. young people ages 8 to 21 have or would like to start their own business someday, and 63 percent agree that they have the ability to successfully start their own business.
21.) Of new Firms:
70 percent are men-owned; 30 percent are women-owned
81 percent are white-owned; 9 percent are African-American-owned;
6.6 percent are Hispanic-owned; 4 percent are Asian-owned;
5 percent are owned by Native Americans, Pacific Islanders and individuals of other racial groups
22.) Think tech companies are founded only by 20-somethings? Think again. The average age of U.S.-born tech founders when they started their companies was 39. In fact, twice as many were older than 50 as were younger than 25.
23.) In 2002, 6.5 million privately held, women-owned firms generated an estimated $940 billion in sales and employed 7.1 million people; however, women-owned firms still underperform men-owned firms.
24.) Nearly 75 percent of most firms' startup capital is made up of equal parts owner equity and bank loans and/or credit card debt.
25.) Angel investors participating in organized groups achieve an average 27 percent internal rate of return.
26.) High-tech firms receive more outside equity investments in their first year of operations than any other type of company—on average, $31,216 compared with firms’ overall average of $7,000.
27.) In 2007, the immigrant rate of entrepreneurial activity—0.46 percent—was substantially higher than the native-born U.S. population—0.27 percent.
28.) Thirty-one percent of the engineering and technology companies founded from 1995 to 2005 had an immigrant as a key founder compared with the national average of 25.3 percent.
29.) Foreign nationals residing in the United States were named as inventors or co-inventors in 25.6 percent of international patent applications filed in the U.S. in 2006.
30.) Young businesses initially are 3 percent more productive than mature businesses; after five years, their productivity advantage increases to 5 percent.
31.) Of 5,000 businesses started in 2004, a little more than 2 percent reported owning patents during their first year of operation, while nearly 9 percent reported having copyrights and 13.5 percent had trademarks.
32.) These states take the cake. Massachusetts, Washington, Maryland, Delaware and New Jersey are leading the United States’ transformation into an entrepreneurial, knowledge- and innovation-based New Economy.
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It is not up to you to finish the task, nor are you free to desist from trying.
26 May 2011, 9:09 am
