The Promise and Peril of Entrepreneurship by Robert W. Fairlie

Author:Robert W. Fairlie
Language: eng
Format: epub
Tags: Entrepreneurship; startups; job creation; survival; small business, minority startups, business exits;
Publisher: MIT Press

But Nonemployer Startups Create Lots of Jobs

In light of the previous focus on employer startups, it is important to understand what is lost (or at least captured only later) by not including nonemployer startups. Figure 6.1 displays the number of nonemployer and employer startups per year in the United States. Of the 4.1 million startups per year in the country, the bulk are started with no employees. There are 3.7 million nonemployer startups each year. The number of businesses starting with employees is much smaller—around 439,000 per year.

Figure 6.1

Number of startups by classification. Source: Authors’ calculations from the newly compiled Comprehensive Startup Panel data set (1995–2018).

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