Startups, by their very nature, need to grow and evolve incredibly quickly. However, it’s tempting to think that they mainly operate through the same two or three innovative CEOs. However, recent data clearly shows that starter companies are reaching out to more new hires than ever before.
We explored in recent posts that working for a startup may be a fantastic boost to anyone’s career. According to an extensive Station F survey, it is clear that these opportunities are arising more and more. Specifically, their study of VC funds shows that at least 48% of startup companies have been hiring new blood since the start of March 2020.
In an uncertain climate, this is hugely positive news. Moreover, Station F advises that other companies are continuing to follow down this route. 78% of those surveyed intend to hire outside their company before 2020 pulls to a close.
Job creation at this level is nothing new. The US Census, for example, states that more than two million people found work through starter companies in 2015 alone. That, of course, is just covering the US. These figures are likely to skyrocket on a global scale.
It is, again, tempting to consider starter innovators to grow from within. However, the employment statistics from recent years continue to show healthy engagement is hardly on the wane.
In 2019, research advises that around 3.1 million jobs emerged through startup hiring. That represents the highest figures have been since 2008, according to records. Therefore, trends appear to be moving in the right direction.
By their very nature, new businesses are small enterprises. They traditionally have less than 500 employees, according to mean data. In fact, this actually applies to 99% of all companies across the US.
However, there are many reasons why innovators will want to take on more and more employees.
The answer is likely to be growth. As we can see from the figures above, the majority of new businesses have an employment increase in their sights. That’s likely to be part of a long game for most innovators.
The fact is, for innovators to meet investment and public demand, they need to increase their workforce. That’s why it is so encouraging to investors and VCs that these firms are still reaching out for public hires.
An increase in employment here also means that CEOs can continue to innovate without the need to handle smaller admin demands. Just as delegation is critical in larger corporations, it becomes a necessity in startup culture, where fast growth Is part of the design.
Station F’s figures make for enlightening reading. As VCs and investors continue to find startup companies through databases such as Fundz, they can safely acknowledge that innovators are continuing to push for growth against all the odds.
Startups will likely continue hiring from pivot to pivot. It will undoubtedly be interesting to see 2020’s statistics in full.
SOURCES
https://data.stationf.co/#employment
https://www.ziprecruiter.com/blog/how-startup-hiring-is-different/
https://www.embroker.com/blog/startup-statistics/
https://www.statista.com/statistics/235515/jobs-created-by-start-ups-in-the-us/