Nov
01

Slumping Startups

startupWhile demographics, regulation, and dominance of bigger businesses may be part of why the economy is growing slowly, another factor is probably the dwindling relevance of startups. Since 1977, the number of firms less than a year old has steadily fallen from 15% to 8%, and the number of persons employed in those same firms has progressively declined from 4% to 2%; equal to the loss of three million jobs.

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  1. Warren Kapsner says:

    Years ago I started my business by using the equity in my house. That was mostly wiped out in 2008 and is only building some now. Many people have started businesses this way and hopefully if we can keep the economy on track without imploding we may see an increase in startups.
    If you created a graph of regulations by federal, state, county and city governments and compared it to a graph of startups, I am very sure as the regulation line went up, the startup line would match it going down.

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