Still No Recovery For U.S. Entrepreneurship By BEN CASSELMAN
More Americans are finding jobs. But so far, at least, they don’t appear to be starting more businesses.
Back in May, I wrote about what I called the “slow death of American entrepreneurship.” For all the buzz about the Silicon Valley tech boom, the actual rate at which Americans start businesses has been falling for more than 30 years.
That story was based on 2011 data, when the economic recovery was still in its early stages. Some economists had hoped that the 2012 numbers would show a rebound.
Last week, the Census Bureau released new data on so-called business dynamics (startups, failures, hirings and firings) for 2012. Entrepreneurship did rise in 2012, but barely. Americans started 410,000 businesses in 2012, up just 2 percent from a year earlier and still more than 20 percent below prerecession levels. The startup rate — the number of new businesses as a share of all businesses — was essentially flat at 8 percent.