start-up

Articles

• Business creation and employment
  17 May 2011, by Bernard Zimmern

  In the late 70s, an MIT researcher shook the whole world of economists by showing that large firms, those that make the media buzz, those who made the Fortune Magazine cover page, does not create jobs but lose them and that employment is created primarily by small companies and even the very small.
  When David Birch invented the new discipline of business demography, he was not arguing that large companies do not create jobs but as a category, they destroy more jobs than they create. (...)

• «The importance of startups in job creation and job destruction»
  26 May 2011, by Rose Blackburry

  Job creation and destruction in the US have been studied by Haltiwanger et al using Census Bureau longitudinal data and show a rate of job creation that is around 18% of existing jobs with job destructions around 16%, leaving a net creation of around 2%.
  Using time series from 1977, they were able to show that startups created «3 million jobs per year during 1992–2005, four times higher than any other yearly firm age group. For comparison, there are an average of 800,000 jobs created at (...)

• USA: Employment in start-ups depends strongly on the initial size
  23 September 2011, by Emmanuel Darche

  During the recent financial crisis, many redundancy plans occurred in France: Molex, Caterpillar, Goodyear ... Job destructions, often by hundreds, are indeed frightening. But the media coverage of these social plans and their related conflicts, should not obscure the fact that jobs destruction are taking place by thousands whatever the economic environment, and, at the same time there are also jobs creation by thousands. What is the balance of jobs creation and destruction? And what are (...)

• Funding and firm creation
  17 May 2011, by Bernard Zimmern

  Companies created by necessity and companies created by opportunity
  In order to create a company, you need cash to allow the company to survive at least for the sales to balance the expenditures.
  That is why most of the companies are created without employee, with minimum fixed costs. But they create few or no jobs, managing, but not all, to feed their creator. Following a categorization given by the Global Entrepreneurship Monitor (GEM), one has to distinguish companies created by (...)

• Comparison of the results obtained using capital stock and equity
  26 May 2011, by Rose Blackburry

  There are more companies for which both employment and equity rather than employment and capital stock. This difference is even more important in the United Kingdom, where, from 1996, the reporting companies increased twofold when equity rather than capital stock is considered.
  UK firms with equity exceeding € 100 000 at their creation have an employment level growing less quickly than companies having a capital stock exceeding this threshold (while having a growth rate about two times (...)

• French firms dwarfism (2)
  13 March 2012, by Romain Sautard

  The number of firms born without employees has been exploding in France but those born with employees, employer firms, have been steadily and ridiculously half Germany and UK

• «Estimating entrepreneurial jobs — Business creation is job creation»
  26 May 2011

  Abstract
  «This paper distinguishes two kinds of jobs in the process of business creation. One is the “employment job” offered by an employer to an employee through a contractual (paid) relationship. The other is the “entrepreneurial job” created by active business owners for themselves. Only a small proportion of salaried entrepreneurial jobs are included in official employment statistics. To estimate the scale of entrepreneurial jobs, this paper examines mainly three databases—the Panel (...)

• Consequences on employment of initial firm capitalization
  23 May 2011, by Romain Sautard

  An INSEE study focusing on the French firms born in 2002 highlighted that, five years after their creation, 52% of these firms are still active. However, the firms’ survival rate is very dependent of the amount invested at their creation. Indeed, it appears that the higher the initial investment, the higher the firm survival rate:
  Chart 1. Survival rate of the French firms born in 2002, 5 years after their birth, depending on the initial capital stock
  Source : Insee, Sine study 2002, (...)