Recently, he wrote an article titled “How City Should View Economic Development,” in response to the Q&A series the Times News facilitated during the election for Board of Mayor and Alderman seats.
Mr. Ferguson cited some interesting points from a study by The Kauffman Foundation, an organization whose work is focused around education and entrepreneurship.
- New businesses account for nearly all net new job creation and almost 20 percent of gross job creation, whereas small businesses do not have a significant impact on job growth when age is accounted for.
- Companies less than one year old have created an average of 1.5 million jobs per year over the past three decades.
- Many young firms exhibit an “up or out” dynamic, in which innovative and successful firms grow rapidly and become a wellspring of job and economic growth, or quickly fail and exit the market, allowing capital to be put to more productive uses.
- Young firms were hit hard during the Great Recession. Even still, from 2006 to 2009, young and small firms (fewer than five years old and 20 employees) remained a positive source of net employment growth (8.6 percent), whereas older and larger firms shed more jobs than they created.
As you can see, small businesses, entrepreneurs, and start-ups are important to job creation and to development and growth of the economy.
At AccelNow, our goal is to support entrepreneurs in Northeast Tennessee, so they have a greater chance of creating sustainable businesses that thrive. Providing them with the opportunity to add value to the economy through long-term job creation.
Do you have an idea for a new business, but aren’t sure where to start? Are you interested in creating a viable, sustainable, and thriving business?
Contact AccelNow today to schedule your free consultation and take one step closer to reaching your dreams and creating sustainable growth in Northeast Tennessee.
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