NEW YORK (MainStreet) — Get your resumes ready, America’s startups are hiring.
Some 83% of startups plan to hire new employees this year, according to a new survey of executives at nearly 400 tech and science startups by Silicon Valley Bank. By comparison, less than three quarters of startups surveyed in 2010 planned to hire.
The improved hiring outlook is thanks largely to stronger business performance overall. Roughly a quarter of the startups surveyed said they had exceeded their revenue goals in 2010 and three quarters of those surveyed said they expect business conditions to keep getting better in the coming year.
"This new data, however, clearly shows that technology companies met or beat their 2010 revenue targets, are still experiencing improved business conditions and are creating U.S. jobs,” said Greg Becker, CEO of Silicon Valley Bank.
Not all startups have fared quite so well in recent years though. The survey found that life-science and clean-technology companies were generally less optimistic about their business prospects for the year ahead than technology companies in general. Just 69% of executives at life-science startups, for example, said it was likely their companies would hire new employees, compared to nearly 90% of those executives who work at software startups.Executives at life-science and clean-tech startups cited excessive government regulation as their main obstacle to achieving more solid growth. More than 80% of these companies criticized the Food and Drug Administration in particular for having a counterproductive approval process that effectively makes it harder for the companies to innovate.
For the rest of the tech startups, the leading concern is simply getting funding to expand their operations, but as the report points out, venture capital funding has been on the rise in recent years, which should help many of these startups reach their target goals and continue to hire eager American workers in the process.