Young Companies Help the Economy Most!

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This is a pretty impressive summary article on recent studies surrounding the benefits of the start-up community to the economy.

This is not new information. I wrote a blog series about 5 years ago detailing how small companies have the natural advantage against the large companies as it relates to innovative technologies, business models, etc. and in my mind the benefits to the economy culminate from this. Young companies simply possess a better opportunity for creating competitive advantage, developing unique business growth strategies, and using better, newer approaches for company development strategies.

Joseph Shumpeter popularized the concept of creative destruction six decades ago…it is the new companies who exercise creativity and the old companies who are destructive!

I am still amazed that government policies (federal, state, local) do not directly promote new company formation and growth often. Perhaps this message to our leaders will start to resonate?