Employment Boost: 83% of U.S. Startups Plan To Hire in 2011 [REPORT]

Credit:

Eighty-three percent of startups said they are likely to hire in 2011, according to the Startup Outlook 2011 [PDF] report released Friday by investment firm Silicon Valley Bank (SVB). The percentage represents a 10% jump over last year, when 73% of surveyed companies reported they would likely hire.

SVB, by way of independent market research firm Koski Research, surveyed 375 venture capital-backed U.S. startups in February and found that most startups are optimistic about business conditions and are looking to hire to support growth.

"This new data … shows that technology companies met or beat their 2010 revenue targets, are still experiencing improved business conditions and are creating U.S. jobs," says Greg Becker, CEO of SVB Financial Group and Silicon Valley Bank. "There is no question that the innovation sector is making a tangible impact on the U.S. economy and our ability to compete globally."

Credit:

The Startup Outlook report also includes data on overall startup performance and potential obstacles.

Twenty-three percent of startups exceeded their 2010 revenue, for instance. Still, respondents identified access to equity capital as the number one challenge -- 39% of respondents reported that difficulty securing financing is handicapping their business success. Thirty-one percent of companies also expressed concern over the U.S. regulatory and political environment.

Even though 83% of companies are looking to hire, more than 25% are having difficulty finding the right talent.

Regardless, the survey's findings suggest that the outlook is bright for America's youngest companies.