Why Startup Job Creation Is Not News to U.S. Economy

I am always on the lookout for startup news. Earlier this month, I read the Kauffman Foundation's report which indicates that without startups, there would be no net job growth in the U.S. economy. Initially, I was elated until I read the complete report.

Startups, or age zero firms, create an estimated 3 million jobs per year. While this statistic may "wow" you, control yourself. After year 0, startups join the ranks of existing firms which actually lose more jobs than they create.

The author of the report admits that startups have a definitional advantage because they can't lose jobs. They can only create. Some of the jobs created in inception will surely be lost the following year when they move from startup status to existing firm status.

I have said before that I love all things startup. However, how can such a temporary creation of jobs matter to the U.S. economy? I think we need to dig deeper to determine the primary reasons for net job losses each year. How can we move from short term survivability to long term sustainability?