The Slow Decline of American Entrepreneurship

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Heritage Foundation:

Start-up companies are the reason America’s economy is more innovative, prosperous and dynamic than the economies of other industrialized countries around the world.

 

New companies create roughly 3 million jobs every year, while existing companies tend to shed 1 million jobs. It is no secret why a healthy entrepreneurial culture is important.

 

Think of it this way: Roughly 1 in 10 U.S. companies are founded each year, and these young firms create 100 percent of all net new jobs. Even in gross terms, start-ups punch above their weight, with 16 percent of all new jobs created by start-ups. Older firms create fewer jobs per firm, but, on average, cut even more, for a net negative impact.