It’s often repeated that startups are the engine of growth, particularly in employment, but this is the best data I’ve seen backing that up (albeit still only for the US). It was conducted by the Kauffman Foundation who do a lot of great work supporting entrepreneurship and was reported on Forbes.
The takeaways are:
- Companies under five years old are responsible for nearly all net job creation and 20% of gross job creation
- It’s young companies not small companies that are making the difference
I would love to see a similar study for the UK. Our startup ecosystem still isn’t as robust as America’s, but I suspect the picture here would be broadly similar.
The work we’re all doing building and investing in young companies is important!