The Surprising Truth About Where New Jobs Come From

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The Surprising Truth About Where New Jobs Come From

by Steve Denning at Forbes

http://www.forbes.com/sites/stevedenning/2014/10/29/the-surprising-truth-about-where-new-jobs-come-from/

SNIP.......................


Several days later, at a campaign rally in New York, Hillary Clinton said she had misspoken. “I shorthanded this point the other day, so let me be absolutely clear about what I’ve been saying for a couple of decades. Our economy grows when businesses and entrepreneurs create good-paying jobs here in an America where workers and families are empowered to build from the bottom up and the middle out—not when we hand out tax breaks for corporations that outsource jobs or stash their profits overseas.”

Where do new jobs come from?

Amid the political maneuvering, there is, happily, some serious work being done by the Kauffman Foundation and the Institute for Competitiveness & Prosperity to figure out where new jobs actually do come from. The surprising truth is that over the last twenty five years, almost all of the private sector jobs have been created by businesses less than five years old.

“In fact, between 1988 and 2011,” write Jason Wiens and Chris Jackson of the Kauffman Foundation, “companies more than five years old destroyed more jobs than they created in all but eight of those years.”

“Both on average and for all but seven years between 1977 and 2005, existing firms are net job destroyers,” write Wiens and Jackson, “losing 1 million jobs net combined per year. By contrast, in their first year, new firms add an average of 3 million jobs.”




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[Wella]

1. In other words, small businesses are job creators; big businesses are job destroyers

And yet, small business is crucified in red tape while big business gets subsidized by the taxpayer.

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3. And Obamacare helps small business.

[B Calm]

2. I thought jobs are created by consumers demand. .