Historically, small businesses have been the primary engine of new job creation in the United States.? If the economy was getting healthy, we would expect to see the number of jobs at new businesses rise.? Instead, we are witnessing just the opposite.? We are told that the economy is supposed to be ?recovering?, but the number of ?startup jobs? at new businesses has fallen?for five years in a row.?
According to an analysis of U.S. Department of Labor data performed?by economist Tim Kane, there were almost 12 startup jobs per 1000 Americans back in the year 2006.? By 2011, that figure had fallen to less than 8 startup jobs per 1000 Americans.? According to Kane, the number of jobs in the United States at businesses that are less than one year old has fallen from 4.1 million in 1994 to?2.5 million?in 2010.? Overall, the number of ?new entrepreneurs and business owners? has fallen by more than 50 percent as a percentage of the population since 1977.? The United States was once known as ?the land of opportunity?, but now that is fundamentally changing.? At this point we truly do have a ?crisis of entrepreneurship? in this country, and that is a huge reason why?America is in decline.? We are witnessing the slow death of the small business in America, and that is incredibly bad news for all of us.
Unfortunately, the problems that small businesses are experiencing right now have been building up for decades.? The economic environment for small businesses in America has become incredibly toxic.? Sadly, we can see this in the numbers.? According to Kane, the following is how the decline in the number of startup jobs per 1000 Americans breaks down?by presidential administration:
Bush Sr.: 11.3
Clinton: 11.2
Bush Jr.: 10.8
Obama: 7.8
Obviously, we are headed very much in the wrong direction.? Kane speculates about why this may be happening?in his paper?
There is anecdotal evidence that the U.S. policy environment has become inadvertently hostile to entrepreneurial employment. At the federal level, high taxes and higher uncertainty about taxes are undoubtedly inhibiting entrepreneurship, but to what degree is unknown. The dominant factor may be new regulations on labor.
The full article originally appeared at The Economic Collapse.?
Source: http://economyincrisis.org/content/we-are-witnessing-the-death-of-small-business-in-america
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