Building an Entrepreneurial Infrastructure
Another key tenet to building a better organic growth
engine is developing the entrepreneurial infrastructure to
generate a more vibrant pipeline of new companies. In
2010, the Kauffman Foundation released The Importance
of Startups in Job Creation and Destruction, which concluded
that virtually all net job creation in the United States
between 1977 and 2005 was driven by startups. The
key to a successful entrepreneurial infrastructure is not
only the creation of startups, but the nurturing of them
as well. Only one in 20 entrepreneurial firms is high
growth in terms of adding jobs, but firms that survive
the first few years spur jobs and often create innovative
goods, services, and processes, according to a 2008 U.S.
Small Business Administration study.