Last updated: October 5, 2012 - 8:10am
For more than a decade, start-ups have been getting leaner and meaner. In 1999, the typical new business had 7.7 employees; its counterpart in 2011 had 4.7, according to an analysis of Labor Department data by E. J. Reedy at the Kauffman Foundation, a research organization focused on entrepreneurship.
The lean model bodes well for companies like Leap2 that hope to become power players with much less manpower. With a work force of contractors, Leap2 could “dial it up and dial it down” as business demanded without having to spend money unless it was necessary, improving the company’s chances of survival. But the implications for the American work force are worrisome, and may help explain why economic output is growing much faster than employers are adding jobs.
- With New Technology, Start-Ups Go Lean
- White House seeks tech advice from corporate chiefs
- Startup America
- In the Spirit of the Valley, It’s Silicon This and Silicon That
- Moving WiFi to the next level
- It's a Man vs. Machine Recovery
- AT&T, T-Mobile job creation claims debunked
- USDA Rural Development: Helping to Put Americans to Work
- Facebook's Initial Crew Moving On
- The urgent need for Silicon Valley to lead a smart and civil conversation on inequality
- Once a Dynamo, the Tech Sector Is Slow to Hire
- US tech startups: An endangered species?
- The President’s American Jobs Act: Fueling Innovation and Entrepreneurship
- Hollywood’s Tanking Business Model
- President Obama brings jobs plan to Silicon Valley