Why We Do What We Do

A guest entry from Jim Flowers, director of VT KnowledgeWorks:

A fresh research report validates our emphasis on the formation and growth of relatively small, technology-based companies.   A summary follows.  Here’s the full report.

High impact firms (both significant revenue growth and expanding employment) represent only 2 to 3 percent of all firms nationally, but they account for almost all of the private sector employment and revenue growth in the economy.

During the 1994–2006 period, firms with fewer than 20 employees represented 93.8 percent of the high-impact firms and 33.5 percent of job growth among high-impact firms.

Nearly all job loss in the economy in each of the three time periods analyzed is attributable to low impact firms with more than 500 employees.

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