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Showing posts with label Brookings Institution. Show all posts
Showing posts with label Brookings Institution. Show all posts

Thursday, May 22, 2014

U.S. Businesses Are Being Destroyed Faster than They’re Being Created

May 22, 2014

It's an article written by Christopher Ingraham from The Washington Post back on May 5th, 2014. The news he is about to share is alarming and should be taken very seriously, how did these's issue become devastating to the American people who run or own a small business.

The US economy is less entrepreneurial now than at any point in the last three decades, according to a study by 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, 2011 - businesses were collapsing faster than they were being formed. Overall, new businesses creation (measured as the share of all businesses less than one-year-old) declined by about half from 1978 to 2011.

If the decline persists, it implies a continuation of slow growth for the indefinite future. This lack of economic dynamism, particularly the steep drop since 2006, may be one reason our current recovery has felt like much less than a recovery.

The Brookings study dug beyond the national numbers to look at the change in new firms at the state and metro levels and found that they mirrored the national trends.

Read the complete article written by Christopher Ingraham from The Washington Post


All the Best,

Joseph F. Botelho One Gram at a Time

Joseph Botelho


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