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Better title: Companies that don't go out of business create the most jobs. An important caveat is that existing firms are so diverse that it can be misleading
by ynniv 16y ago
Better title: Companies that don't go out of business create the most jobs.
An important caveat is that existing firms are so diverse that it can be misleading to think of a “typical” firm. For example, there are two simple categories of existing firms: those that go out of business (Deaths) and those that continue (Survivors). On balance, existing firms lose more jobs than they create. But once Deaths are set aside, Survivors usually create more net jobs than startups do.
I think they just proved that their own title is creative accounting. If the goal is a policy change, this report shows that we can reduce unemployment most effectively by keeping established companies open.