Obamanomics: More businesses going under than are being created

American Thinker ^ | 05/07/2014 | Rick Moran

[SeekAndFind]

For the first time in 3 decades, businesses are collapsing faster than they're being created. That's the concluisions of a study done by the Brooking Institution, which looked at business creation since 1978.

Washington Post:

The American economy is less entrepreneurial now than at any point in the last three decades. That's the conclusion of a new study out from the Brookings Institution, which looks at the rates of new business creation and destruction since 1978.

Not only that, but during the most recent three years of the study -- 2009, 2010 and 2011 -- businesses were collapsing faster than they were being formed, a first. Overall, new businesses creation (measured as the share of all businesses less than one year old) declined by about half from 1978 to 2011.

No, it's not entirely the fault of President Obama's policies, but given the slide in the last 3 years of the study, it's hard not to make a case that higher federal taxes and more regulation has stifled business creation and led to more business failings.

[NonValueAdded]

“No problem, we’ll make it up on volume”

[MrB]

It’s easier for a fascist government to control a few very large businesses than a bunch of small mom & pop places.

[Buckeye McFrog]

Details are interesting. Businesses are still failing at the same rate, but far fewer people are attempting to start new ones.

Gee, I wonder WHY???

[SeeSharp]

It’s not that we are less entrepreneurial. We are less efficient. Efficiency has a direct impact on the depth of the division of labor and on the length of the production cycle.

[Red Badger]

[Vaduz]

Taxes fees fines and regulations right here folks step right up our trap door is always ready.

[Truth29]

"It’s easier for a fascist government to control a few very large businesses than a bunch of small mom & pop places."

Bingo!

[PATRIOT1876]

OOPS!

Butterfingers!

[GregoTX]

"In this present crisis, government is not the solution to our problem; government is the problem."- President Ronald Reagan

[MeshugeMikey]

[Soul of the South]

“Taxes fees fines and regulations right here folks step right up our trap door is always ready.”

All of the above are contributing factors. I would also add:

1) Difficulty accessing capital. Since 2008 it has been almost impossible for small business to secure bank financing for expansion.
2) Migration of supply chains out of the country. Startups involved in making physical products often cannot find manufacturing or raw material resources in the USA. Sourcing materials or finished goods overseas, financing the production, ensuring consistent quality, and protecting intellectual property is a difficult and expensive proposition for a startup.
3) Declining work ethic in the US. Almost every small to medium size business person I know says finding reliable employees with a strong work ethic is very difficult in today’s entitlement society, particularly with the younger generation.
4) Concentration of retail outlets. It is very difficult for small companies to obtain product placement with national chains such as Wal-Mart, Home Depot, Best Buy. The big chains prefer dealing with big suppliers who have sophisticated information technology systems, can afford to extend dating, often provide in-store support for products, and who will carry excess inventory for just-in-time shipment.
5) Rising cost of providing employee health insurance and as well as property and liability insurance.

[V_TWIN]

“More businesses going under than are being created”

Me thinks that was the objective all along.

[Vaduz]

Agree with all above the plan for keeping people needing the feds and have total control is the goal the next two years will be full speed ahead it’s going to get messy.

[WashingtonSource]

Bump

[ridesthemiles]

I am a life-long bookkeeper.

Self-employed for the last 34 years, working for small businesses that don’t need a full time bookkeeper.

IF I still had a large clientele, I would offer to brainstorm FOR FREE with clients on how to carve the business down to the very few that would run it.

Better to have just the family running things & keeping control of your business affairs away from Obama & his cohorts.