When it comes to creating jobs, all entrepreneurs are not created equal, a new study shows. Though fewer than 4 percent of all entrepreneurs qualify as high-impact entrepreneurs, they account for almost 40 percent of all jobs created by entrepreneurs.
Endeavor, a global nonprofit that identifies and supports high-potential entrepreneurs, examined data from a survey of more than 800,000 people worldwide to assess individuals' entrepreneurial attitudes, activities and aspirations. The data verified the organization's belief that the answer to job creation lies in high-impact entrepreneurs, also known as high-growth entrepreneurs.
The common denominator among these high-growth entrepreneurs was founding a business that achieved rates of growth, which was defined to be an average of 20 percent or more estimated annual growth in the number of individuals employed.
These entrepreneurs usually start their companies when they are between 26 and 45 years old and are highly likely to have attended college, the study found. The majority of high-growth entrepreneurs work in partnerships and are more likely to have a significant number of international clients.
In terms of their attitudes, these entrepreneurs have little fear of failure and are among the most likely of those surveyed to start a business because they perceive there is an opportunity to be exploited, as opposed to doing so because they have no other option.
Once high-growth entrepreneurs become successful, they are more likely to start funding other ventures as angel investors, the study found.
"The report proves that entrepreneurship has an important role in propelling future growth," said Rhett Morris, director of Endeavor's Center for High-Impact Entrepreneurship. "High-impact entrepreneurs take advantage of new opportunities to lead the way in creating jobs and fostering economic growth in their countries. These individuals are also most likely to support the next generation of entrepreneurs."