In a nice opinion piece for The Wall Street Journal, by Schramm et al. They essentially say that the age of the business not the size is the more precise characteristic of companies creating jobs.
The more precise factor is not the size of businesses, but rather their
age. According to the Census Bureau, nearly all net job creation in the
U.S. since 1980 occurred in firms less than five years old. A Kauffman
Foundation report released yesterday shows that as recently as 2007,
two-thirds of the jobs created were in such firms. Put more starkly,
without new businesses, job creation in the American economy would have
been negative for many years.
The authors go on to cite economic and regulatory barriers that are in the way of young companies and propose a four pronged solution.
- Welcome immigrants seeking scientific training to our universities by granting permanent residency and work status.
- Unbridle academic entrepreneurs by opening up licensing to non-university entities.
- Provide easier assess to capital.
- Fix the cost burden of SOX compliance for small companies.
Seems like a reasonable course of action to me. How about you?
Hat tip to John Cottingham and Mike Eckert for pointing the way.