In many ways, New York is a city that is driven by its vibrant and extensive small business sector. Although the Big Apple is currently struggling with a relatively high unemployment rate, lending to small firms and entrepreneurs is on the rise, growing by 45 percent over the past year, according to a recent report by Congressman Anthony Weiner.
However, a separate study released this week by the World Economic Forum suggests the amount of wealth and jobs created in startup and entrepreneurship sectors across 10 countries may be a lot narrower than many assumed.
According to the report, the top 1 percent of startups generate 40 percent of all new jobs in the sector, while the top 5 percent create 67 percent. As for total revenue in the sector, the top 1 percent contribute 44 percent, and the top 5 percent generates as much as 72 percent.
"Understanding the elite few in their own ecosystem may prove a far more effective strategy than trying to replicate the success factors of other entrepreneurial hubs such as Silicon Valley," said report co-author and Stanford University professor of management George Foster.
While New York may have some ways to go in its economic recovery, its head-turning tech startup scene may be be contributing more wealth and jobs to the city than originally assumed, encouraging many entrepreneurs to form an LLC in New York City.
Tags : incorporation news, ny, small business management
Posted: Apr 20th, 2011