Which businesses create more jobs—startups or existing businesses?

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)
Homebased business 52.0
Franchise 2.0
Sole proprietor 73.2
Corporation 19.5
Employer business 21.5
Nonemployer (business
without employees)
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