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Study: Top 1 Percent of Startups Produce 40 Percent of Jobs
Apr 22, 2011, 00:33 AM
Read 'Study: Top 1 Percent of Startups Produce 40 Percent of Jobs' at 'Time to Start Up,' the small business blog by BizFilings.
The vast majority of the wealth and jobs created by startups and entrepreneurs is actually concentrated in a much smaller percentage than many analysts and business leaders may have anticipated, according to a new report by the World Economic Forum.
The report, titled Global Entrepreneurship and Successful Growth Strategies of Early-Stage Companies, found that the top 1 percent of startups worldwide contribute 44 percent of total revenue and 40 percent of jobs created. Additionally, the top 5 percent generate 72 percent of the wealth and 67 percent of employment positions.
Released Tuesday, the study involved more than 380,000 companies across 10 different countries.
"This report offers compelling proof that to drive economies forward, the key is not to generalize approaches for all entrepreneurs, but to focus resources on high-impact entrepreneurs - those innovators with the highest potential to scale," said Linda Rottenberg, co-founder and chief executive officer of Endeavor Global.
Entrepreneurs looking to form a company may want to consider how this study may impact their ability to achieve their financing needs. Leveraging it in their favor may actually help to procure a loan or private investment.