Subject
Entrepreneurialism and dynamism in the US economy.
Significance
Entrepreneurship is a key feature of the US economy, and traditionally drives its innovation and growth. However, the Census Bureau's most recent report on business dynamics has shown a depressed state of entrepreneurship in the United States. New firm creation is down significantly compared to before the 2007-09 recession. Trends since the 1970s indicate that this may be a structural, rather than simply cyclical, issue.
Impacts
Rising voluntary job-quit rates may presage growth in new firm creation.
A slowing global economy may blunt the edge that large firms receive from their ties to overseas market.
An emphasis on customisation and service in manufacturing could permit easier entry for start-ups.
Going Entrepreneurial? IPOs and New Firm Creation