Startups are said to be the economy’s great job creators but the credit crunch has hurt young businesses. In a recent issue of Time magazine (4/11) it was reported that new businesses with fewer than 100 employees created about 50% more jobs than older firms from 1992 to 2005. However from 2006 to 2009, jobs created by startups have fallen behind. Startups (which typically finance their businesses with home equity loans and credit cards) have been particularly hurt by this recession which caused a decreased demand and a lack of credit.
Women entrepreneurs in the San Francisco Bay Area were able to create and retain 4,332 local jobs in 2010 with training, funding, and support from Women’s Initiative for Self Employment.
The need to support young businesses has never been greater. To create the jobs that will restore our economy we will need to make capital accessible to the smallest new businesses.
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