The leading 1 per cent of startups are responsible for some 40 per cent of all new jobs created.
This is according to new figures from the World Economic Forum (WEF), which has been considering ways that governments can use entrepreneurship as a spur for growth.
The WEF report looked at startups from around the world, and found that they share more similarities than they have differences.
The report aimed to provide governments with recommendations to help them boost growth through entrepreneurship, and found that governments should be concentrating on small firms rather than trying to “replicate Silicon Valley.’
The WEF found that small businesses tend to adopt a pattern that sees them grow for two years, and then contract for one. It said that businesses need to learn from the contractions in order to “build a stronger engine for future growth”.
The coalition government has been keen to highlight its commitment to small businesses. Its most recent Budget focused on measures it believes will help firms expand.