Factsheet: Why are entrepreneurs important for society?
Research shows that jobs are primarily created by small and newly started companies. New companies moreover contribute by bringing more competition between companies causing the least competitive ones to leave the market. The important benefits are that companies in the market become more efficient and increase their innovation capacity.
The effects differ depending on whether they are seen in the short, the medium, or the long term. In the long term, the productivity of startup companies is higher than the productivity of established companies, also in Denmark.