Entrepreneurship to the Rescue!
Amid the national bluster about creating jobs, one of the most robust sources of new jobs tends to be overlooked: start-ups. Although only a fifth of startups survive long term, they still can have a long-term effect on job creation and the economy, according to a new study from the Ewing Marion Kauffman Foundation
– the world’s largest foundation devoted exclusively to entrepreneurship.
The Kauffman study, “After Inception: How Enduring is Job Creation by Startups?” found that although only 20 percent of startups exist 25 years after they started, employment remained at 68 percent of the initial number, showing that many startups thrive and create jobs that balance the jobs lost by companies that close.
Although startups’ employment after five years is 80 percent of what it was when the companies began, many of those jobs remain long-term. The study found that in the year 2000, startups created almost 3.1 million jobs. Only half of those firms survived to 2005, but the surviving firms maintained 78 percent — more than 2.4 million — of the jobs that existed in 2000.
Another interesting statistic revealed in Kauffman studies: the top-performing one percent of all firms create about 40 percent of new jobs – averaging 88 jobs per company, annually. These firms end up with between 20-249 employees, with the average firm adding two-three net new jobs per year.
STUDY: Download the Kauffman Foundation’s “After Inception: How Enduring is Job Creation by Startups?”
In The Spotlight...
SUCCESSFUL ENGAGEMENT: Fort Smith, Arkansas
MAXIMUS provides various business services to clients in the area of State and Local Taxes. A specialization at the firm provides Opportunity Analysis to select communities and developers across the country.
Recently, the MAXIMUS Location Optimization Group led by Managing Director, John Castro, CEcD, successfully completed a Land Use Opportunity Analysis with partners: Cushman-Wakefield, National Sports Services and TRAC, Inc. The analysis and submitted report made recommendations to the private-public partnership in Fort Smith, Arkansas for land use strategies that encompasses minor league baseball, sports and outdoor entertainment, retail, office, residential, and municipality-oriented facilities on a dynamic 88 acre land parcel fronting the Arkansas River in Downtown Fort Smith.
MAXIMUS has subsequently secured a marketing engagement for the property.
MAXIMUS will be working to attract quality users, tenants and operators to the site and will provide Real Estate Development, State & Local Tax and Business Incentives coordination and assistance to those interested parties.
MAXIMUS is comprised of Economic Development, Real Estate, Site Selection, Tax and Legal professionals who consistently deliver optimum results. MAXIMUS assists with various economic development strategies and performs national site search analysis for expanding and relocating companies with an emphasis on Location Optimization.
For additional information on MAXIMUS’ capabilities, contact: John Castro, CEcD – Managing Director – Location Incentives and Economic Development Advisory Services (214) 466-8747.
August: The Silly Season – in politics, that is. And here we go….
Vacation is underway in DC. The lawmakers have left the building. They are heading to their hometowns; to their constituents for a survey, or two; to their favorite water hole, and/or watering hole. (They could probably use that!)
If you thought the politics were “thick” before, get ready – The Silly Season will usher in a storm of bad-mouthing, shifting winds and platforms, and likely an all-out assault on the “other” party. It might be thought of as “hunting,” but ELECTION
Season has now officially begun. (Camouflage, please.)
FINANCIAL REFORM will lead much of the discussion, but sadly the financial issues that are critical to the ever-present, looming economic clime, will likely be pushed aside to make room for debates over repealing the 14th amendment, counting votes on slam-dunk legislation, electing WWF executives, and how much money ants need.
You can’t make this stuff up.
And yes – the market will react. A variant cycle will probably continue downward until October reveals the likely outcome of November 2; the market will then set its course for the balance of the year.
This month the outlook is: Seasonal Whims.
The ‘Whims’ of Change, as it were. The Dog Days of Summer are now giving way to The Silly Season…Election Day, dead ahead. Watch out, Captain!
August 2010 will be the first real look at the Fall Forecast – prediction: storms ahead.