Entrepreneurial start-up companies make up a surprising percentage of the employers in the U.S., according to a new report from the U.S. Census Bureau.
Census, in its inaugural Annual Survey of Entrepreneurs, finds that nearly 1 in 10 businesses with paid employees have been in business for less than two years.
This points to the vital role entrepreneurs play in the growth of the U.S. economy – and its ability to generate new jobs.
While 10% of businesses may not seem like much, consider that these businesses – and the jobs they represent – did not even exist two years ago. They are additive to the economy.
In contrast to these start-ups, there were 167,917, or 3.1 percent, that had been in business for 16 years or more. More than 4 in 10 employer firms (2.4 million, or 44.1 percent) have been in business between 11 and 15 years.
The start-ups of today become the large-scale employers of tomorrow, so it’s vital that this country continues to be a welcome environment for starting new businesses.