Curiously, the decline in ownership started in the late 1990s during the cot.com bubble for reasons that are not discussed in the article. There was a small recovery during the first decade of this century. The recovery was snuffed out by the Great Recession when there was another steep decline beginning in 2008 lasting until 2012 when the decline sort of leveled off.
A new report from the Ewing Marion Kauffman Foundation, a Kansas City, Mo., nonprofit, tracks the number, survival and density of small businesses (those with fewer than 50 employees) across the U.S. While small companies are making it past their fifth year at a near-record rate, business ownership and firm growth remain historically low, possible reflections of declining dynamism across the U.S. economy.
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In the group’s latest index, for example, just over six out of every 100 adults owned a business in the U.S. That’s down from about 7.8 two decades earlier, highlighting a drop in entrepreneurship over that time.
At the same time, the smallest businesses—with one to four employees—made up 53.1% of small businesses, up from 49.5%. That suggests that small firms are less likely to see breakout growth.
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For men and women who start businesses, they’re sticking around longer. The survival rate—firms that make it at least five years—hit a low of 42.9% in 2011 during the lingering aftermath of the recession. The most recent index posted a three-decade high of 48.7%.
* http://blogs.wsj.com/economics/2016/11/17/small-businesses-are-living-longer-but-also-staying-smaller/?mod=djemRTE_h
** http://stopcontinentaldrift.blogspot.com/2016/11/company-new-startups-declining-for.html
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