Neutralism and Entrepreneurship: The Structural Dynamics of Startups, Young Firms, and Job Creation

Ewing Marion Kauffman Research Paper

24 Pages Posted: 7 Sep 2010

Date Written: September 1, 2010

Abstract

An increasing number of studies and reports have shown that new and young companies account for most net job creation in the United States. This empirically documented reality, however, is not exclusively a result of new and young companies being particularly prolific or idiosyncratically superior to other firms. Indeed, concepts such as job creation and entrepreneurship increasingly are conflated with young and small firms. Yet the age breakdown of job creation is partly a reflection of the dynamics of firm accumulation - how firms enter and exit and survive over a period of time. In any given year in the U.S. economy, new and young companies represent a plurality of all firms in the economy. That is, they make up the largest bloc of firms by age category, meaning their considerable job creation record is partly structural. This does not mitigate the contribution of these companies to job creation, but that contribution must be seen in the proper structural context.

Keywords: Firm Formation, Young Companies, New Companies, Job Creation

Suggested Citation

Stangler, Dane and Kedrosky, Paul, Neutralism and Entrepreneurship: The Structural Dynamics of Startups, Young Firms, and Job Creation (September 1, 2010). Ewing Marion Kauffman Research Paper. Available at SSRN: https://ssrn.com/abstract=1657167 or http://dx.doi.org/10.2139/ssrn.1657167

Dane Stangler (Contact Author)

Ewing Marion Kauffman Foundation ( email )

4801 Rockhill Road
Kansas City, MO 64110-2046
United States
816-932-1044 (Phone)

Paul Kedrosky

SK Ventures ( email )

San Francisco, CA
United States

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