as an investment in healthcare continue to rise rapidlyA sort of work report from National Venture Capital Association, venture capital and Kenan Institute for Private Enterprise at the University of North Carolina Shows strong employment growth at VC firms of 990% over the 30-year period from 1990 to 2020. This is in stark contrast to the private sector as a whole, where employment grew by 40% between January 1990 and February 2020, the report said.
While 73% of corporate VCs tend to go to California, Massachusetts and New York, the majority of jobs in these companies (62%) are outside traditional VC hubs like Silicon Valley, Boston and New York City.
In addition, the employment growth rate of venture-backed businesses is impressive. Between 1990 and 2020, among the 67,000 companies in the NVCA dataset, VC-backed firms experienced an 8.2% annual growth in employment. This far exceeds the 1.1 percent growth rate (provided by the Bureau of Labor Statistics) for total private sector employment between January 1990 and February 2020.
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To capitalize on job growth, NVCA urges Democratic and Republican leaders on Capitol Hill to create visas for foreign-born entrepreneurs as part of a letter supporting U.S. Rep. Zoe Lofgren (D-CA)’s Let Immigrants Start Jobs (LIKE) Act 2021 year.
The legislation would allow the world’s most talented entrepreneurs to start new companies and hire Americans in the United States. According to the NVCA, immigration is a key component of job creation.
“Immigration is critical to America’s economic success and innovation. Foreign-born entrepreneurs play a key role in creating high-growth startups,” the letter said. “Research shows that immigrants are twice as likely to start new businesses as native-born Americans. Although they make up only 14% of the population, immigrants make up a quarter of all business owners—and the share of high-tech start-ups is even higher .”
Greg Brown, executive director of the Frank Hawkins Kenan Institute for Private Enterprise at the University of North Carolina, noted in an emailed response that at the local level, universities play an important role in regional job growth as a source of technological innovation and skilled worker issues. He also pointed to national programs and policies across the country to develop seed funding sources for entrepreneurs.
Earlier this year, lawmakers approved a one-time grant of nearly $10 billion to states as part of the plan. State Small Business Credit Program (SSBCI) NVCA CEO Bobby Franklin said additional capital resources for the states’ ecosystems.
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