Is There a ‘Death of American Entrepreneurship’?
Posted at 5:34 a.m. on May 16
Jordan Weissman at Slate: “Last week the Brookings Institution released a much-talked-about-report reminding the world that Americans don’t start businesses at the same pace they used to.”
“There are also some good, not especially frightening reasons that might explain why businesses aren’t multiplying like they used to.“
“Though it’s hard to say for sure, the startup rate has likely declined in large part thanks to the victory of giant, national chains over smaller, local businesses … Look at the speed of growth of completely new businesses compared with the growth of ‘establishments.’”
“Beginning at least in the 1980s, the number of new establishments opening each year grew faster than the number of new firms, as shown in the graph below from the Ewing Marion Kauffman Foundation. In short, Walmart and its cohorts took over.”
“While the number of smaller new companies might be in decline, there hasn’t been a noticeable change in the number of startups transforming into large enterprises.”