New Report Shows Pace Of Startups In Long-Term Decline

Date: May 08, 2014

Trend Found Around The Nation

A new report from the Brookings Institution finds that startup growth has been on a significant decline in recent decades. The report finds that the decline has occurred among all sectors, even the vibrant tech sector. In addition, it is not limited to struggling regions or cities, but instead is spread across the nation. Since the financial crisis, the number of startups shutting down has surpassed the number of startups launched. The report draws no conclusions as to why the process is occurring, or what might be done to change it. The major recommendation the report makes is to allow more highly-skilled immigrants into the US in order to ease the shortfall of those skilled in science, engineering, math and technology. Still, the report cautions that its latest data is from early 2011, and the trajectory may have changed since then.

Further Reading:

Venture Beat covers the report, which is also posted on Brookings’ web site.

NFIB's Research Foundation studies:  Economic and Political Uncertainty Top Impediments to Small Business Growth
This news article is intended to keep small business owners apprised of current events that may affect them. It does not necessarily reflect NFIB’s policy position on such issues.

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