'Business deaths now exceed business births for the first time' in decades.
A new Brookings Institution report indicates that businesses are shuttering their doors more quickly than new ones are popping up.
From the Washington Post:
The American economy is less entrepreneurial now than at any point in the last three decades. That's the conclusion of a new study out from the Brookings Institution, which looks at the rates of new business creation and destruction since 1978.This descent has a broad scope; no group is immune. Brookings notes that “the national decline in business dynamism has been a widely shared experience.” It “hasn’t been isolated to particular industrial sectors and firm sizes” and “reach[es] all fifty states and all but a few metropolitan areas.”
Not only that, but during the most recent three years of the study -- 2009, 2010 and 2011 -- businesses were collapsing faster than they were being formed, a first. Overall, new businesses creation (measured as the share of all businesses less than one year old) declined by about half from 1978 to 2011.