Robert Litan’s research provides an interesting window into job growth and its impact on the US economy.  Interviewed by Marty Moss-Coanes on WHYY radio yesterday, Robert presented data that demonstrates that almost all the job creation since 1980 has come from entrepreneurs creating small businesses that were less than five years old.

The research is also the subject of a November 6, 2009 Wall Street Journal piece written by Carl Schramm, Robert Litan and Dane Stangler.

“The more precise factor is not the size of businesses, but rather their age. According to the Census Bureau, nearly all net job creation in the U.S. since 1980 occurred in firms less than five years old. A Kauffman Foundation report released yesterday shows that as recently as 2007, two-thirds of the jobs created were in such firms. Put more starkly, without new businesses, job creation in the American economy would have been negative for many years.”

Although the research does not focus specifically on data in the social sector the Kauffman Foundation has funded studies examining the impact of entrepreneurship on social responsibility as Bill Green speaks about at the foundation’s website.

One could argue that small nonprofits have contributed to this pool of new jobs.  According to the National Center  for Charitable Statistics The nonprofit sector is composed of 1.56 million tax-exempt organizations and accounts for 8.1% of all wages and salaries paid in the United States.

What is the impact of the nonprofit sector on your community?  Is your organization a younger nonprofit that is part of the job growth?  Are you able to communicate the importance of the social sector to your community’s economy?