How Startups Are Key To The Economic Recovery

Mar 19, 2012

"Despite the promise brought by the latest round of successful IPOs and rallying public markets, the news continues to be filled with headlines around the possibility of a “false recovery.” Europe’s continent-wide recession and expanding debt issues, rising oil and gasoline prices, an only-modest improvement in the unemployment rate, and the “moderate” growth predicted by the Fed continue to leave people feeling uneasy about the state of the economy. With the underlying and systemic issues still present in the financial sector, some even believe that we could see something akin to the recession of 2008 happen all over again.

But there is one segment that remains very bullish about the future of the economy and where signs of improved growth and economic stability can be found. This “hope” for our economy is in the entrepreneurs who start small businesses — the innovators and dreamers who believe that against all odds they can build something better — create something from nothing, and drive change in
the world.

A 2011 study by Forrester showed that “78% percent of very small businesses in the U.S. (VSBs) expect their businesses to grow in the next two years, and 39% of those expect that growth, by number of employees, to be double.” But this really isn’t surprising. Small businesses, in a variety of industries, are the job creators of the United States and have been for some time; according to the U.S. Small Business Administration, small businesses represent 99.7% of employers’ firms and have created 64% of the net new jobs over the past 15 years."

Read more