Data Show Crisis of Entrepreneurship in U.S.
More Business Closing than Opening Since 2008
(Washington, D.C.) – According to a Gallup analysis of data from the U.S. Census, business failures began to outpace business startups in 2008 – and have been negative every year since. From 1977 through 2008, the number of new startups outpaced the number of failing businesses by about 100,000 annually. Since then however, the country has a deficit of about 70,000 firms. This weakening of the vibrancy and creativity of the U.S. economy has enormous ramifications for the nation. It means less economic opportunity for young workers, less impetus for innovation, and ultimately less revenue for all levels of government to address important national priorities.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
“Too many of our elected officials in Washington are trying to tell working Americans that the economy is healthy, instead of focusing on our real economic challenges. Incomes are not growing. The cost of living is rising. And in the broader economy, the number of employers in America is falling as fewer and fewer new companies are started. Today’s policy failures will bring on greater economic challenges for our children.
Latinos in particular, will be hurt by the increasing burden of Washington policies that stifle business growth. We start new businesses at more than twice the national rate, and more and more Latinos are being forced into part-time work instead of full-time. It is the Hispanic community that counts on thriving small businesses more than perhaps any other. Our leaders need to admit the problem is real, and focus on policies that get government out of the way of willing workers and entrepreneurs.”