“While private sector business creation fell 9 percent between 1980 and 2011, the birth rate of new tech businesses was 69 percent higher in 2011 than it was in 1980, according to the report. Over the same period of time, the job-creation rate of those young tech firms – aged between 1 and 5 years old – was twice as robust as the average rate for firms in the rest of the private sector. That’s partly due to what the report cites as the ‘up-or-out’ dynamic: tech startups tend to either fail quickly or grow rapidly.”
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