Not all the job creation news coming out of Washington, D.C., these days is gloom and doom. A sizeable majority of startup companies plan on hiring new workers over the next year, according to a new survey. And this is the group that counts when it comes to generating jobs — data from the Ewing Marion Kauffman Foundation show that young companies accounted for nearly all the job growth in our country between 1980 and 2005.
The Startup America Partnership, a national network of startups and local champions, surveyed its membership to gauge their confidence about their businesses and the overall economy.
The most encouraging finding was that 85 percent of its members plan on hiring over the next 12 months. Eleven percent said they would hire 10 or more employees, and 42 percent said they would add between three and 10 employees.
Eighty-four percent of members surveyed were optimistic about the prospects for their businesses in the next 12 months, while 40 percent of those rated their view of the future as "strongly optimistic." When asked about the overall economy, they were somewhat more balanced — 50 percent said they were growing more confident in the US economy, while only 20 percent are growing less confident.
They said that the greatest challenges to meeting their growth goals for the next year was access to capital, followed by economic conditions, human resources and taxes/regulations.
"As young companies grow and generate revenue they hire more employees, creating more job opportunities," said Scott Case, CEO of the Startup America Partnership. "Our members are comprised of amazing startups from every region in the country and we encourage everyone to connect with startups in their local community in order to meet the real heroes of the economy."