The Kauffman Foundation recently published a report that finds there would be no net new job growth in the U.S. economy without small-business startups.

Examining information from a U.S. government data set called Business Dynamics Statistics (BDS), the report, “The Importance of Startups in Job Creation and Job Destruction,” found that: “Job growth is driven, essentially entirely, by startup firms that develop organically.”

The report found that small-business startups were not just responsible for net job growth on average, but for every year but seven since the government began collecting this data in 1977.

Given the indispensable role that small-business startups play in job creation, it is imperative that Congress and the administration focus more intently on the small-business credit crunch.

As U.S. Federal Reserve Chairman Ben Bernanke conceded during last week’s Fed Forum on “Addressing the Financing Needs of Small Businesses,” it is virtually impossible for startups to access financing in the current credit environment. Please click here for more on the Fed Forum.

If small firms are going to lead the U.S. out of the current state, as they have in past recessions, then they must be able to access sufficient capital.

Please click here for the Kauffman report.