Starting Startups

A new study looks at how startup formations follow consistent patterns, the Kansas City Business Journal reports.

“This study reveals an important structural context in which firm formation and job creation occur that helps explain why new and young companies dominate net job creation,” said Robert Litan, Kauffman’s vice president of research and policy. “We need to understand the structural features of entrepreneurial capitalism — the why of firm formation and job creation — so we can take steps that support and encourage those features and not unknowingly undermine them.”

Of interest to at-home businesses because the easier it is for new companies to form, the better the survival rate could become. For now, “formation and survival rates for new companies end up being fairly consistent through time, boosting the number of U.S. companies each year. Those 5 years old or younger make up the largest chunk each year, adding the most net new jobs,” the newspaper reported.