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FREEDOM LINE BLOG: When Creating Jobs, Look at Company's Age, Not Its Size

There’s a fascinating article in today’s Wall Street Journal discussing the best way for government…

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When Creating Jobs, Look at Company's Age, Not Its Size

There’s a fascinating article in today’s Wall Street Journal discussing the best way for government to help spur job creation.

Unfortunately, in troubled economic times the language of recovery is too often tilted toward large, established companies or to "small businesses," a broad term that traditionally applies to businesses with fewer than 500 employees. The conventional wisdom is that such businesses account for half of the labor force and are therefore the engine of future job creation.

That's not quite the case. 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…[more]

November 06, 2009 • 06:07 pm

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