It’s widely accepted that new businesses are the most important source of new jobs, The Wall Street Journal says.
That’s when you look at official jobs numbers. But when you look outside the offical numbers, startups are even more important.
Young startups don’t always incorporate immediately. That means productive Americans toiling on laptops at their kitchen tables building the next big thing may be technically unemployed, which distorts the importance of startups to job creation in the eyes of the government.
Entrepreneurial startups create 3.5 million jobs a year, according to a Small Business Administration economist.
A million of those were for paid employees, and the other 2.5 million were jobs founders created for themselves.
“To encourage job creation, policymakers need to recognize that startup business owners are creators of jobs for others, but most importantly, for themselves,” writes the SBA’s Ying Lowrey. Bootstraps, y’all.
ajeffries [at] observer.com | @adrjeffries