“American entrepreneurship is actually on the decline, and has been for decades.”
“…the number of new businesses started by Americans has fallen sharply since 2000, and so too has the percentage of American workers working for companies that are less than a year old.Indeed, in 2013 Americans started fewer businesses than they did in 1980, when the country’s population was much smaller. This decline isn’t just due to the aging of the U.S. population—Americans of all ages just seem less likely to open new businesses than they once were. And, as Hathaway and Litan put it, the decline “has been documented across a broad range of sectors in the U.S. economy, even in high-tech.”
much of that decline has been concentrated in what economists call “subsistence” businesses. These are businesses whose founders have no interest in creating a big company. Their ambition is to do something they enjoy, gain some measure of financial independence, avoid having to deal with a boss, and so on. And the data is clear that in recent years, fewer people with goals of that kind have been starting businesses of their own.
high-growth firms are being formed as actively as ever, they also find that these companies are not succeeding as often as such companies once did