This article was posted on Bloomberg BusinessWeek
By Thomas Gold
Middle school students probably aren’t spending much time obsessing over future job prospects. Their parents—as well as economists and researchers—are.
For good reason. A recent Brookings Institute report revealed that for the first time in 30 years, the percentage of firms departing the economy exceeded those entering it. This is due less to the number of company deaths, which has remained relatively stable, than to the number of new firms, which as a percentage of all companies fell by half during this period. These results are further supported by the annual index of entrepreneurial activity released by the Ewing Marion Kauffman Foundation in April. The report found a continuing decline in entrepreneurial activity in 2013, with the number of business startups back at the prerecession levels of 2006.
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