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Start-up Firms in the Financial Crisis

Listed author(s):
  • Catherine L. Mann

    (International Business School, Brandeis University)

Start-up firms are a key feature of the U.S. econoomy. Annually, start-ups account for about 20 percent of all companies. On average, they create 3 million jobs per year, somewhat more than 5 percent of total job creation. But, by 2009, in the depths of the Great Recession, the rate of job creation at start-ups has fallen significantly, to about 2 million jobs per year, as a result of fewer start-ups and/or fewer jobs at each start-up. Although job creation at start-ups should increase as the economy recovers, it is worth asking whether the financial crisis will have a lasting effect.

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File Function: First version, 2011
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Paper provided by Brandeis University, Rosenberg Institute of Global Finance, International Businesss School in its series Rosenberg Global Financial Briefs with number 3.

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Length: 3 pages
Date of creation: 2011
Handle: RePEc:bui:rosgfb:03
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