Four-fifths of start-ups plan to hire more people this year on the back of strong results last year, according to a survey by US-based Silicon Valley Bank (SVB).
SVB said in its Startup Oulook 2011 survey of 375 US-based, private, venture capital-backed software, hardware, life science and clean-tech companies that 23% exceeded their 2010 revenue targets, up significantly from 2009’s 15%.
Three in four also expected business conditions will get even better in the coming 12 months and so the vast majority of surveyed companies (83%) planned to hire in the coming year. The recruiting plans percentage was up from 73% a year ago in the inaugural survey.
Greg Becker, chief executive of SVB, said: "Technology companies met or beat their 2010 revenue targets, are still experiencing improved business conditions and are creating US jobs. There is no question that the innovation sector is making a tangible impact on the US economy and our ability to compete globally."
Respondents by and large identify access to equity capital and the regulatory and political environment as their largest impediments to growth. Start-ups said the regulatory issues, such as uncertainty about new regulations, the impact the overall regulatory environment has on risk taking and health care reform, were of greatest concern.
More than 80% of life science companies said the US government could help them grow by improving its Food and Drug Administration approval process.