STOCK MARKET WATCH -- Tuesday, 13 May 2014

[Demeter]

3. More Businesses Shutting Down than Starting Up

http://www.weeklystandard.com/blogs/more-businesses-shutting-down-starting_791127.html



A new Brookings Institution report indicates that businesses are shuttering their doors more quickly than new ones are popping up.

From the Washington Post:

The American economy is less entrepreneurial now than at any point in the last three decades. That's the conclusion of a new study out from the Brookings Institution, which looks at the rates of new business creation and destruction since 1978.

Not only that, but during the most recent three years of the study -- 2009, 2010 and 2011 -- businesses were collapsing faster than they were being formed, a first. Overall, new businesses creation (measured as the share of all businesses less than one year old) declined by about half from 1978 to 2011.

This descent has a broad scope; no group is immune. Brookings notes that “the national decline in business dynamism has been a widely shared experience.” It “hasn’t been isolated to particular industrial sectors and firm sizes” and “reaches] all fifty states and all but a few metropolitan areas.”

http://www.brookings.edu/~/media/research/files/papers/2014/05/declining%20business%20dynamism%20litan/declining_business_dynamism_hathaway_litan.pdf