In my current magazine story I cite the ongoing studies by the Kauffman Foundation, based in Kansas City, on the conditions that encourage or discourage the creation of new, entrepreneurial businesses around the country. One reason for Kauffman’s emphasis, as I point out, is the startling-but-true observation that virtually all the net job creation in the U.S. economy comes from brand new companies, in their first few years of existence. As Dane Stangler of Kauffman says in the foundation’s latest report:

In any given year, new and young businesses create nearly all net new jobs in the U.S. economy. Put more starkly: If you want new jobs, then you want new and young firms. Older, established companies tend, on balance, to be net destroyers of jobs.

That is, big, established firms, from Walmart to IBM, employ a lot of people, but overall more of them are shedding rather than adding employees. Newly created firms, whose payrolls by definition represent jobs that weren’t there before, are in toto the source of virtually all nationwide employment growth.