Skip to comments.America Has a Serious Start-Up Slump: Discouraging news about American entrepreneurship.
Posted on 12/18/2015 7:03:03 AM PST by SeekAndFind
We confidently assume that we have the world's most entrepreneurial nation, and the proof seems overwhelming. Google, Facebook and Twitter are but three (relatively) recent startups that have become corporate titans.
Before them, there were others: Microsoft, Intel and FedEx. We seem to excel at nurturing new firms. Or do we?
Previous studies have shown that, despite the success of firms like Facebook, the number of startups has dropped sharply, from about 13% of all firms in the late 1980s to about 8% in 2011.
Now a new study from the National Bureau of Economic Research reports that the expansion of the remaining startups - which traditionally has been much faster than the growth of existing companies - has slowed considerably.
By some measures, it now barely exceeds the average of older companies.
So there's a double whammy: fewer startups and slower growth at the survivors.
This could be one reason the recovery from the Great Recession has been so sluggish, with the economy's growth averaging about 2% annually from 2010 to 2014, much slower than earlier post-World War II recoveries.
Using Census Bureau data, the study examined business births (the creation of new firms), deaths (companies going out of business) and growth from 1976 to 2011. It confirmed earlier studies: Though most new firms fail in their first five years, the growth of the survivors is so strong that it offsets the losses of other firms and creates much of the economy's overall increase in jobs. But that began to change after 2000, when startups' high growth faded.
The upshot: "Startups and high-growth young firms (under five years) contributed less to U.S. job creation in the post-2000 period than in earlier periods," said the report.
The startup slump may also help explain the slowdown in productivity
(Excerpt) Read more at realclearmarkets.com ...
If you want a successful business start up, you better be promoting Bambi’s agenda.
Awhile back I was reading about a lady who wanted to open up an ice cream shop in a mall. I wish I could remember where it was, might have been in California. Anyway, she had the place rented, and had her employees ready to go. All she needed was the various permits. Six months after signing the lease, she was still waiting for the permits.
Permits...regulations...taxation...it’s a wonder anyone tries to open a new business these days.
There are probably small new businesses that are dealing in cash and under the radar. I recently watched a video made by a guy in Georgia who deals in storage unit auctions and other means of making cash. He gave a list of 25 ways to make money without getting a job. Scrap metal, Etsy, cannabis cultivation - there are many ways people are making money and not reporting it.
If you are well-connected to Democrats, there are all kinds of financially lucrative Government-paid “Business” opportunities, as long as you are paying off... oops... I mean donating, to the right Dem Pols, on all levels.
Running Obamacare-approved “Wellness” Programs,
“Community Action” businesses,
etc, etc, adn.
The sheer number of them, and the amount of tax money flowing to them, is simply is mind-boggling. If you are the right skin color, you don’t even have to justify what you are doing to get the big government checks.
It's not good when government creates a situation where the only possible approach in order to succeed is to break the law.
Under the table, they're not paying taxes, insurance, permits etc. Besides that, they're collecting all the freebies the unemployed are so used to.
There was an article last week about the middle class not being a majority in the US anymore. The only chance for survival of the economy is for it to be advantageous to start and grow individual and small businesses legally.
RE: Scrap metal, Etsy, cannabis cultivation
Isn’t cannabis cultivation illegal?
Have a copy?
When I lived in Cleveland I came across countless people who ran most of their business in cash. One was an Italian restaurant that only had 3 employees on their books. Here in West Virginia, we have personal property tax. So the state eventually gets its money when you buy something with your illicit cash.
There are so many regulations and so many taxes on every level that it is almost impossible to open a new business without running afoul of the law or going broke trying to follow all the regulations.
Welfare pays better, so does McDonald’s.
Not if it “falls off the back of a truck”.
Why do they think Hillary is making such a fortune? To start up anything in America today, you have to be politically connected. Its a real tragedy.
His name is Glendon and I’ve watched several of his videos He’s always going off about people who want something for nothing and he emphasizes hard work.
The Obama recession has crippled our economy and small businesses.
The local Chinese Restaurant in my Cleveland Neighborhood only uses the cash register during lunch. They stop using it at 5 pm. It is only used for credit card transactions.
So, what you're saying is that this is the ticket to Easy Street?
That is a growing segment of our economy here in NJ; as companies leave for greener pastures (either overseas or in the South), we are left with a black market economy and government checks (fake disabilities and fake autism are hot areas). It drives down the standard of living for the taxpayers that remain, and there are less & less people contributing to the pot used to fix roads, school buildings, etc. (in fact, any funding for schools goes straight to the teacher - then a portion of that passes through the union on to the Democratic Party).
Funny you should mention that. The storage unit guy has an entire video dedicated to found money. If you report it, law enforcement ASSUMES its illicit and you’ll never get it back.
I have a regular job but I’m always interested in making extra income.
I’ve got a wife, dog, 2 dead jeeps, a CB750, an old Blazer, and a new Tacoma on order to support.
Try and deal with all the regulations. You need a ton of money and a great lawyer. Start up businesses in some industries are only for the big guys....and that was the point to all these regulations, it destroys the American dream for the little guy.
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