U.S. Companies are Getting Older
August 4, 2014
Not only is the American population aging, businesses in the U.S. also are growing older.
Older firms are increasingly controlling the largest market share in different sectors of the economy, according to a paper by the Brooking Institution’s Robert E. Litan and Ennsyte Economics’s Ian Hathaway. By 2011, the portion of U.S. businesses aged at least 16 years reached 34%, compared to 23% in 1992. Moreover, those mature companies went from employing only 60% of private-sector workers in 1992 to employing nearly three quarters of the private-sector labor force in 2011.
The report attributes this trend to declining entrepreneurship, among other reasons. The rate of new business creation in the U.S. has been constantly shrinking in the past three decades. “The decline in new firm formation rates had occurred in every U.S. state and nearly every metropolitan area, in each broad industry group, and in all firm size classes,” the authors explain.
Read the full story at blogs.wsj.com
This entry was posted in News and tagged Business Incubation, economic develop, economic development in alabama, Economic Development in the Shoals, economic development in the Shoals area, shoals economic development, shoals entrepreneurial center, start a business in alabama, Start a business in the Shoals. Bookmark the permalink.