In the last two decades about 60 percent of the private sector’s net new jobs have been created by existing establishments and about 40 percent from the churn of startups minus closures. While firm births account for many new jobs, job losses from firm closures are equally important in accounting for net effects to employment levels.
|Source: Bureau of Labor Statistics, BED. Table 1:
Small Business Shares
|Kind of Business||Share (percent)|
|Source: U.S. Census Bureau, SBO, SUSB.|