Benchmark

Startups Are Making a Comeback in America

An index of startup activity surged after a steep post-recession decline

The NYC Uncubed tech recruiting event in New York City.

Photographer: Mario Tama/Getty Images
Lock
This article is for subscribers only.

Even though American politicians like to praise small business as the job-creating machine, research shows that it's the startups that expand employment. These new entrepreneurs are now back on the rise, according to a report Thursday by Kauffman Foundation, which studies entrepreneurial activity.

The Kauffman Index of Startup Activity, which is an indicator of new business creation, had the biggest increase in 2015 over the past two decades, reflecting an increase in the share of new firms as well as more serious intentions behind the projects.