Last week's jobs report seems to throw cold water on the contention that tech entrepreneurs can solve America's employment woes. The Atlantic Wire used the report's data, which showed the most significant growth being in healthcare and education sectors, to dismiss social media startups as empty buzz rather than "a way to kickstart the economy."
The New York Times ran a front-page article on Friday arguing that tech companies' lean teams carry "worrisome ... implications for the American work force," pointing to a study by the Kauffman Foundation that new businesses in 2011 have almost as many employees as they did in 1999. Companies like Instagram aren't helping the argument. When it was acquired for $1 billion by Facebook, it only had 13 employees; even today it only has one employee for every 2.8 million users.
To read the original article: So What If Tech Start-Ups Are Small? Their Job-Creation Impact Is Big | The Next Silicon Valley
