WASHINGTON, Aug. 8 (Xinhua) -- U.S. startups are struggling to get financing compared to mature companies, despite they are the primary drivers of U.S. job growth, a report released by the New York Federal Reserve Bank showed on Tuesday.
The report found that startups which are five-years-old or younger were twice as likely to be adding jobs and growing revenues, compared to mature small employer firms.
Startups account for 34 percent of all U.S. employer firms and for almost 20 percent of the gross job creation, the report quoted an outside research as of 2014 as saying.
According to the report, startups were more likely to apply for financing than mature companies, but they tended to apply for smaller amounts which were 100,000 U.S. dollars or less in financing.
It found that 69 percent of startup applicants face financial shortfalls, compared to 54 percent of mature companies. More than half of startups were either avoiding debt or discouraged from applying credit.
"These difficulties with securing sufficient financing were particularly acute for early stage (0-2 year old) startups, and they have a higher rate of failure than second stage (3-5 year old) startups," said the report.
