Should new businesses hire industry veterans or fresh graduates?

We've been discussing the process of starting a new business, and one of the most critical aspects of this process is staffing - that is, deciding which people to hire. Please discuss the following question: Is it better for new businesses to hire experienced veterans of the industry or to staff the business with younger employees who are right out of university?

I think a company should staff a business with the most experienced employees possible. If you are starting a new business, you need people around you who know what they are doing and can quickly get the business up to speed. Spending time training inexperienced people will slow you down.

I understand what Claire is saying, but if you are starting a new business, you want people who are particularly enthusiastic and energetic. Who better than a recent graduate to bring those qualities to the job? You would be guaranteed an ambitious hard worker.