Jonathan Ortmans at the Policy Forum Blog has a nice entry highlighting some key entrepreneurship related policy areas and their state through 2010. Interesting that “Limited action.” is the status of “entrepreneurship education and training in high schools and college).
From his piece:
This past year brought new, sobering data that defied conventional wisdom that all businesses contribute to job growth at least to some degree. “The Importance of Startups in Job Creation and Job Destruction” by economist Tim Kane documented that net job growth occurs in the U.S. economy only through startup firms. While older companies lose 1 million jobs annually, new firms add an average of 3 million jobs in their first year. Moreover, during recessionary years, job creation at startups remains stable, while net job losses at existing firms are highly sensitive to the business cycle. Simply put, entrepreneurs are the primary engines of job creation in the country. If you zoom in further, you will see new firms that scale—those that grow in revenues and jobs—are especially important. More precisely, the top 1 percent of all companies generates 40 percent of new jobs, and the vast majority of these firms are no more than five years old. If we look even closer at the most rapidly growing young firms (those between ages 3-5 years), they represent less than 1 percent of all companies in the economy, but account for 10 percent of new jobs created each year (see High-Growth Firms and the Future of the American Economy).
While Ortmans has great faith that federal leaders will take action, my hunch is the most innovative work is being done at the state, city, and university level. Any thoughts?