Small Business Starts Strong, but Employment Lags

New entrepreneurs launch their businesses from a passion for their product or service, or a desire to be their own boss, and have significant experience (11.5 years, on average) in their industries, according to new survey data from SCORE, mentors to America's small businesses. "In this fourth edition of the Megaphone of Main Street data report series, we chose to focus on startups (small businesses in their first year of operations) because the state of new businesses is generally considered a significant indicator of economic health and innovation," said Bridget Weston, Acting CEO of SCORE. "Data shows that the number of new businesses started has been steadily recovering following the 2008 recession; but, the employment created by these new businesses has not seen comparable rates of recovery. Our research suggests that challenges in finding the right target market, finding financing and hiring the right team could explain this gap."