Startups Matter. A Lot.
(check the great Kauffman/Tim Kane blog, www.growthology.org for more**)
Firms less than a year old create the new jobs. (Meanwhile, the other huge job creators are fast-growing 'gazelle' firms -- imagine if we subtracted those from the job creation numbers in that graph!) Please look long & hard at that graph... and think about what that means for America... and think about what that means for Idaho.
[Please note that none of this invalidates the equally powerful reality that it is GROWING companies that matter. A big part of what makes startups so important is the subset of them that have great potential to grow...]
Let's take advantage of this powerful dynamic to grow some jobs! Who's in?
In a healthy economy:
* Where we gain by far the most new jobs? Startups (primarily from startups that grow)
* Over time, where do we gain net new jobs? Fast-growing firms, especially high-potential startups
I just got back from an international entrepreneurship conference (ICSB, see Facebook) where a major focus was on how to grow entrepreneurial communities. (See my slides at http://bit.ly/aoa3jN) We have an unbelievable array of talent to call on to help us.
It requires that we do the right things the right way and for the right reasons. But the expertise is out there, available to any state, city or country; We know how to do this. But we have to CHOOSE to do it.
The time is now. Let’s talk. then... let's act!
If you'd like to hear more, ping me by email or twitter, subject line/hashtag of "#RedShoesRevolution". There are things we can start doing today that make sense strategically and tactically - many of them need not cost a dime. So why not?
Norris (email@example.com ; @entrep_thinking)
p.s. Tim himself asked "How many economists even guess this is how the U.S. economy works? I didn't until I saw the data." And Tim's research passion is entrepreneurship? No wonder Washington has never had a clue.
** the graph was done by Tim K and if you want to play with data on your own, try www.YourEconomy.org - it's great fun, though the job creation numbers are sobering...