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Startup Dynamics: Transitioning from Nonemployer Firms to Employer Firms, Survival, and Job Creation
Startup Dynamics: Transitioning from Nonemployer Firms to Employer Firms, Survival, and Job Creation
Working Paper Number: CES-25-26
Abstract
Understanding the dynamics of startup businesses' growth, exit, and survival is crucial for fostering entrepreneurship. Among the nearly 30 million registered businesses in the United States, fewer than six million have employees beyond the business owners. This research addresses the gap in understanding which companies transition to employer businesses and the mechanisms behind this process. Job creation remains a critical concern for policymakers, researchers, and advocacy groups. This study aims to illuminate the transition from non-employer businesses to employer businesses and explore job creation by new startups. Leveraging newly available microdata from the U.S. Census Bureau, we seek to gain deeper insights into firm survival, job creation by startups, and the transition from non-employer to employer status.
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Page Last Revised - April 29, 2025
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