Successful enterprises are rare and high impact comes late

While attending Erkko Autios lecture at the Heidelberger Innovationsforum on November 25th, we have come across interesting figures about the success of enterpreneurs and their enterprises in the U.S. :

These figures actually should shatter most of the public policies that focus on getting many enterpreneurs started in certain industry domains. Another study by the SBA Office of Advocacy in the US titled “High Impact Firms: Gazelles Revisited” shows that success often does not come at the start of companies. Companies classified above as high impact companies (that is companies that experience high growth and generate jobs) are actually quite old, on average 25 years ! These companies are generating almost all of U.S. job growth and also not predominantly high-tech. So, contrary to common belief, it is not the usual Internet startup of a college drop-out that ensures our future prosperity, but often the hidden champion around the corner in established industries.

Prof. Scott A. Shane has written an interesting book,The Illusions of Entrepreneurship: The Costly Myths That Entrepreneurs, Investors, and Policy Makers Live By that supports these lines of thought and describes many more examples of common misconceptions about enterpreneurship.