Here's good news from our friends at the Kauffman Foundation and the U.S. Census Bureau: New business formation in 2011 rose for the first time since 2006, growing by the largest percentage increase in nearly a decade, according to the U.S. Census Bureau's latest Business Dynamics Statistics (BDS) report.
New companies with one to four employees comprise the vast majority of new businesses formed each year, accounting for, on average, 86 percent of new firms since the late 1970s in the BDS data.
New companies employing between one and nine employees accounted for 50 percent of jobs created by new companies, which actually represented a decrease from 2010. This highlights the larger relative role of bigger new companies in new job creation.
Of companies less than one year old, those with
- one to four employees created, on average, more than 1 million jobs per year over the past three decades; those with
- five to nine employees added, on average, half a million jobs per year.
The Business Dynamics Statistics (BDS) series compiled by the U.S. Census Bureau tracks the annual number of new businesses (startups and new locations) from 1976 to 2011. More information about the BDS can be found at Business Dynamics 2011
- For more information, visit the: Kauffman Foundation Newsroom