Established companies get most of the attention, but startup companies are where the world gets its best ideas.
Startup companies are the embodiment of the entrepreneurial spirit that built America. Such innovators made the nation an industrial giant in the late nineteenth century with the rise of railroads and oil, and lives on today in the tech innovations of Silicon Valley.
Startups are absolutely vital to the health of the U.S. economy because today's startup companies are tomorrow's Apple Inc. (Nasdaq: AAPL) and Google Inc. (Nasdaq: GOOG, GOOGL). In fact, they are the source of most of America's economic strength. That includes both job growth and overall economic growth.
Startups create far more jobs than established companies, which often do more trimming than hiring. Every year, startup companies create about 3 million jobs, while older companies chop an average of 1 million jobs.
Startup companies also draw an immense amount of investment - $48.5 billion in 2013 alone.
And according to Steve Case, AOL founder and the CEO of the Washington, DC-based investment firm Revolution, startup companies are about to explode across the entire United States.
"At heart, entrepreneurship is the lifeblood of the U.S. economy," Case wrote in a recent USA Today column. "It stands to reason that facilitating a more evenly distributed entrepreneurial landscape - with every region of the country contributing - is in our vital national interest, and an essential criterion for preserving the middle class and that very simple idea we know as the 'American Dream.'"
The infographic below illustrates why startups matter so much - the vital role they play in the economy and how they will change the world.
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About the Author
David Zeiler, Associate Editor for Money Morning at Money Map Press, has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.