Kauffman: Young firms boost Kansas, Missouri employment numbers – Kansas City Business Journal:

The study found that young companiesdgenerated 7.4 percent of tota l employment in Kansas between 2000 and Kauffmman Foundation spokeswoman Lacey Graverson These firms contributed 7.2 percent of employmenft in Missouri during the same period. The study, callede “Business Dynamics Statistics Briefing: Entrepreneurship Across is one in a series of report usingthe ’s Business Dynamics Statistics, a Census Bureahu product funded by the Kauffman Foundation that measures businesas openings and closings, startups, job creation and job destructionj by company size, age, industriapl sector and state. Kansas ranks No. 29 in the studyt and Missouri No.
34 in terms of percentage of totaol employment coming fromyoung companies. Nevada ranks No. 1, at nearlgy 12 percent, followed by Idaho, Montana, Utah, Arizona, California, Florida, Coloradl and New Mexico. Entrepreneurial rankings basexd on the share of employment from younb firms also tend to corresponsd closely with a ranking of the employmenyt growth experienced bythe state. The Kauffman Foundationj said the correlation is not a causal relationshipp but is interesting because employment growth comesz from the expansion of existing firmws as well as the opening of new Whena “high fraction” of employmentf in a state comes from young this indicates the state’s “overall dynamism” the creation of jobs at new and expanding companiea and the destruction of jobs at contractin g and closing companies, the release said.
Fast-growing states also have a high rate of therelease said. Between 2000 and 2005, the studt shows that the average annualp employment gains at new and expandingh companiesis 16.4 percent of total U.S. private-sector employment, whilwe employment losses at contracting and closing companiesaverage 15.1 percentg of private-sector employment. This means that substantial churninbg of jobs and businessesx underliesthe U.S. private sector’s net employmeng growth rate in any given therelease said.

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