According to the 'Global Entrepreneurship and Successful Growth Strategies of Early-Stage Companies,' [pdf] report, that was published in 2011 by the World Economic Forum in collaboration with Stanford University and Endeavor Global, the top 1% of companies from among 380,000 companies reviewed across 10 countries contributed 44% of total revenue and 40% of total jobs, while the top 5% contribute 72% of total revenue and 67% of total jobs.
The report recommends that policy-makers seeking to drive wealth creation and jobs through entrepreneurship develop a better understanding of the economic, social and political factors which helped the leading local companies to succeed. “Understanding the elite few in their own ecosystem may prove a far more effective strategy than trying to replicate the success factors of other entrepreneurial hubs such as Silicon Valley,” said George Foster, Wattis professor of management and Dhirubhai Ambani, faculty fellow in entrepreneurship at the Graduate School of Business, Stanford University, and co-author of the report.
US Census data for 2007, analysed in 2010 by researchers at the Kauffman Foundation, [pdf], America's leading entrepreneurship think-tank, showed that the US economy contained 5.5m firms. "About half a million of these were brand new (age zero, that is); another 2m, or just over one-third, were five years old or younger. Some companies were expanding, some contracting, some standing still. By and large, job creation (about two-thirds) came from young firms, many of which were small and never got much bigger. Only a small number of firms, moreover, creates a disproportionate share of such additional jobs; these are the top-performing firms. For example, the top 5% of companies (measured by employment growth), or about 273,000 firms, creates two-thirds of new jobs in any given year. The top 1% of companies (about 55,000), generate 40% of new jobs in any given year."
NESTA (National Endowment for Science, Technology and the Arts), a UK science advocacy group, said in a report [pdf] in 2011 that a small minority of fast growing companies account for half of new jobs in the UK. It also said:
A report published in 2012 by the Kaufmann Foundation, America's leading entrepreneurship think-tank, said that state economic development programs, which traditionally target high-tech firms, may be missing 75% of high-growth companies.
"Our analysis of these fast-growing firms shows us that high-growth company founders can come from anywhere," said Dane Stangler, director of Research and Policy at the Kauffman Foundation. "Their firms can be found throughout the country and, rather than following the conventional expectation that high-growth companies are grouped into a narrow technology category, they represent exceptionally diverse industry segments. These findings offer important lessons for economic development leaders, such as to target firms that are high-growth rather than high-tech."
© Copyright 2011 by Finfacts.com