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What Drives a Startup to Make Its First Hire? Hint: It's Not Always Revenue

What Drives a Startup to Make Its First Hire? Hint: It's Not Always Revenue
Photograph by Steve Harries/Gallery Stock

Small businesses have long been credited as important job creators for the U.S. economy. More recently, newly formed companies have been identified as especially important to job creation. So what can policymakers do to encourage startups to hire?

In pursuit of answers, the Small Business Administration’s Office of Advocacy used existing data to describe the characteristics of nonemployers that go on to add workers. Among the results published today (pdf):