by Mike ‘Mish’ Shedlock
The number of startup businesses continues to slide. In 1977, the share of US firms that were less than a year old was at 16%. In 2014, the latest data, the percentage was 8%.
The Wall Street Journal says Sputtering Startups Weigh on U.S. Economic Growth.
Is that the case?
The U.S. economy is inching along, productivity is flagging and millions of Americans appear locked out of the labor market.
One key factor intertwined with this loss of dynamism: The U.S. is creating startup businesses at historically low rates.
The American economy has long relied on fast-growing young companies to fuel job growth and spread the latest innovations. As recently as the 1980s and 1990s, a small number of young firms disproportionately contributed to U.S. employment growth, helping allocate workers and resources to burgeoning segments of the economy.