Wednesday, September 27, 2017

Pennsylvania Lags Behind US in Startup Job Creation

Last Thursday I attended the Startup Alleghenies launch event to network with those interested in learning how to create one's own company.  The presentations were interesting.  I went to offer my statistical services to anyone who had such a need.  

Looking at the census bureau's website I came across this article 

Startup Firms Created Over 2 Million Jobs in 2015

The map below shows the % change in startup job creation by state.  The states with the largest increases are in the west the southeast, and Michigan.  These numbers are encouraging but the report states that "this level of startup activity is well below the pre-Great Recession average of 524,000 startup firms and 3.3 million new jobs per year for the period 2002-2006." 

The growth in startups in different states may be reflective of the business climate there. The article does not explicitly state what the definition of a startup company is.  It speaks of old (> 25 years old) and young companies (< 6 years old) but does not state how startups fit into this picture.  It also provides no information on how long startup companies tend to last. 

People love to quote how Apple computer was founded in a garage but often they are the exception to the rule.  Would there be differences between the states in how long startups last?  Usually one discovery raises more questions than it answers.  I'm sure the data exists elsewhere.

On a side note I have begun to write columns for the The Hill Talk online publication.  I have written two posts there so far.  My next post will be the seventh anniversary post where I take stock of the blog.

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