Planting Seeds of Job Creation: How New Businesses and Entrepreneurship Drive Employment Growth

"Entrepreneurship is the last refuge of the troublemaking individual." - Natalie Clifford Barney, American playwright and poet.

Starting a new business can be daunting, but it can also be an opportunity to create jobs and contribute to the economy. Did you know that most new jobs are created by new businesses and entrepreneurship in their first 5 years? It's true! In fact, according to a report by the Kauffman Foundation, startups account for nearly all net new job creation in the United States.

I was trained as a Kauffman Foundation Administrator and Facilitator of the FastTrac program over 20 years ago. I knew then and before that startup entrepreneurs created more jobs and in fact, big corporations tend to keep the jobs they already have created or have layoffs. They still employ the most people; they just don’t create new jobs. Want to know why?

So, why are new businesses and entrepreneurship so crucial for job creation? Let's take a closer look.

Firstly, new businesses and entrepreneurship bring innovation and new ideas to the market. By creating new products and services or improving existing ones, they can create demand and stimulate growth in the economy. This can lead to job creation in various sectors, from manufacturing to technology.

Secondly, new businesses and entrepreneurship can also fill gaps in the market. They can identify areas where there is unmet demand or where existing businesses are not meeting customer needs. By filling these gaps, they can create new opportunities for themselves and others, leading to job creation.

But, starting a new business is not easy. It requires hard work, dedication, and a willingness to take risks. Many new businesses fail within their first few years, which can be discouraging for entrepreneurs. However, even failed businesses can contribute to job creation by providing valuable learning experiences and creating a network of contacts and resources for future endeavors.

In order to support new businesses and entrepreneurship, policymakers and organizations can provide resources and funding to help entrepreneurs succeed. This can include access to mentorship programs, business incubators, and funding opportunities such as loans or grants.

Overall, new businesses and entrepreneurship play a crucial role in job creation. By bringing innovation and filling gaps in the market, they can create new opportunities for themselves and others. While starting a new business can be challenging, the potential rewards for both the entrepreneur and the economy are significant.

Starting a new business is like planting a seed - it takes time and effort to grow, but the rewards can be bountiful.

Key points to remember:

• Startups account for nearly all net new job creation in the United States.
• New businesses and entrepreneurship bring innovation and new ideas to the market.
• New businesses and entrepreneurship can fill gaps in the market, creating new opportunities for themselves and others.
• Failed businesses can still contribute to job creation by providing valuable learning experiences and creating a network of contacts and resources for future endeavors.
• Policymakers and organizations can provide resources and funding to help entrepreneurs succeed.

References:

• "The Importance of Startups in Job Creation and Job Destruction," Kauffman Foundation, April 2014.
• "Entrepreneurship and Job Creation," Congressional Research Service, March 2013.