The good news about Schumpeter's creative destruction is that, thanks to the Internet and digital tools, it has never been easier to start a company. One study found that the availability of open source software, cloud computing, and the rise of virtual office infrastructure has driven the cost of launching an internet venture down from $5,000,000 in 1997, to $500,000 in 2002, to only $50,000 in 2008.
According to Austan Goolsbee, Chairman of the Council of Economic Advisers, in the past 13 years, start-ups created more than 40 million jobs. One study revealed that over the last 30 years nearly all net job creation in the United States occurred in firms less than five years old.
To read the full, original article click on this link: Don Tapscott: The Need to Reinvent Venture Capital
Author: Don Tapscott
