Census Data Shows Startup Businesses Near historic Lows
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Census Data Shows Startup Businesses Near historic Lows
Fewer New Businesses May Mean Less Job Creation in the Future
(Washington, D.C.) – According to the U.S. Census Bureau, business startups remain near historic lows. Just 410,000 businesses were started in America in 2012 – the most recent year for which data is available. This represents a 20 percent drop from pre-recession levels. And while the percentage of businesses that are less than a year old grew between 2000 and 2006, that percentage has fallen dramatically since then. Hispanic entrepreneurs are feeling the pinch too, with entrepreneurial activity among Latinos declining since 2010. The number of new companies is important because today's startup firms tend to grow into the industry leaders of the future. As they grow, those successful firms tend to hire a large number of employees – in contrast to America's large, established companies, which may tend to have more stable workforces.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
"When America's economy is healthy, we see many entrepreneurs with good ideas taking the risk of starting new businesses. While not every new company succeeds, those that do succeed, grow to provide important services. They expand the tax base. And they provide needed employment for millions of Americans. We see brand new family businesses, tech companies started by people just out of school, restaurants, and a host of other small companies with the desire to contribute to the economy and the potential to grow into important parts of their community.
But in the last few years, we're just not seeing those new businesses get started. Whether because of high taxes, excess regulation, lack of skilled workers, or some combination of factors, we're seeing fewer entrepreneurs today than in the past. That's a loss that America will feel even more down the road. It is time to recognize this problem and change course."
For interviews with a LIBRE representative, please contact: Brian Faughnan, 703-678-4581 or Steven Cruz, 202-578-6173
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