We Americans pride ourselves on our entrepreneurial spirit, but the number of new business start-ups is going steadily down.
The U.S. business death rate exceeds the business birth rate. According to Gallup, the United States ranks 12th in the rate of new business start-ups, behind such nations as Denmark, Finland, Hungary, Israel, Italy, New Zealand and Sweden.
Why? I can think of several possible reasons.
- Businesses are often started by employees of large corporations who see a market niche that their employers are unwilling to try to fill. The increase in non-compete agreements makes it increasingly harder for employees to do this.
- The stagnation of the U.S. economy is self-perpetuating. Nobody will start a business unless they think people will buy its products or services. The lack of good jobs at good wages means there is less of a demand for new products.
- Because of the uncertain economy, individuals…
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