Startup America To Help Curb Sliding Startup Job Creation

Startup America is working with high growth potential startups to fuel the nations job market (CEO Scott Case photo: nibletz LLC)

An alarming study was released yesterday by the Hudson Institute entitled “The Collapse Of Startups In Job Creation”. Many startup enthusiasts, founders, and entrepreneurs were shocked to hear that with all of the national talk about “startups”, job creation has slipped 22% since 1977 (according to the study).

It’s important to understand that with this study “startup” is used to describe not only traditional entrepreneurial driven tech startups but small businesses as well. Regardless, the data has some scratching their heads.

Since 1977 new firms have combined to create an average of 3 million jobs per year. The most recent data available from 2010 showed that the 1977 figure was off by 22%, all the while most thought jobs created via small business and startups were improving, not declining.  Going back to the George HW Bush and Clinton years close to 11.3 million Americans per thousand worked in startup jobs.

Conversely, the Kauffman Institute has said numerous times that since 1980 companies less than five years old have accounted for nearly all the job growth. The Kauffman Institute, The Hudson Institute and many government socio economic advisors have said that startups are needed to fuel job growth.

Startup America, the organization spearheaded by AOL founder Steve Case in conjunction with the Obama Administration, is working day in and day out to continue to support and fuel high growth potential startups, in hopes to quickly re-invigorate the U.S. jobs market and curb the slide.

Recent data from Startup America’s optimism survey reveals that the partnership and it’s nearly 10,000 member startups, founders and entrepreneurs are on the right track. The survey, published last week, says that 85% of the Startup America members plan on adding jobs in the next year. 44.6% of members plan on adding more than 3 jobs.

Startup America CEO, Scott Case, told nibletz.com today “America’s economic heroes are young high-growth startups and the founders that lead them. Over the last 18 months amazing startup communities have rallied around these companies all around the country. I’m in LA today and the energy is palpable – we see the same in places like Iowa, Tennessee, Colorado, and Illinois. No doubt every region needs to go all-in to support America’s startups.”

Linkage:

Read the CNBC Story here

Here’s more Startup America coverage from nibletz.com

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