America Less Entrepreneurial, Employment Impacts

America Is Getting Less Entrepreneurial -- NYMag: Robert A. Litan of the Brookings Institution and Ian Hathaway of Ennsyte Economics provide some scary data points in two research papers they have released in the last few months.

• The share of all companies comprised by start-ups under a year old fell by half between 1978 and 2011
• The proportion of private-sector workers employed at older firms has increased from 60 percent to 72 percent since 1992
• The proportion of workers employed at young firms has declined over the same period
• Companies under a year old are failing more often, with the “failure rate” for start-ups climbing to 27 percent from 16 percent in the early 1990s
• The “failure rate” has increased for all but the longest-established businesses

more news below

Follow @vcexp