Even though being an entrepreneur seems to be the latest craze of our generation, a new study shows that the creation of new businesses in the U.S. is on the decline. The study, conducted by the Brookings Institution from 1978 to 2011, found that businesses were collapsing faster than they were being created, especially in the most recent years of 2009-2011.
Over the last three decades, U.S. businesses have declined by an average of 47.2%. On the worst end of the scale, businesses have declined by as much as 60% in some states, the hardest hit being Alaska, Hawaii, Vermont, New Mexico, Wyoming, and Oregon, though with the recently legalized marijuana laws in Oregon that occurred beyond the scope of the study, the statistics are most likely subject to change. On the better end of the scale, the states that declined the least, around 18%, include New York, Illinois, Missouri, Texas, and New Jersey.
According to the Washington Post:
“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 why our current recovery has felt like much less than a recovery.”
So our country’s got a fever, and the only perscription, is more entrepreneurs!