Startups Making Up Smaller Share of U.S. Businesses



The rate of new company creation in the United States dropped to a record low in 2010, according to a survey by the U.S. Census Bureau's Center for Economic Studies and the Ewing Marion Kauffman Foundation.

Researchers found the business startup rate fell to 7.87 percent in 2010, the first time it dipped below 8 percent. The startup rate was at its highest in 1987, when it was 13.02 percent. Only 12 percent of U.S. employment in 2010 was at new companies, compared with 20 percent in the 1980s.

Researchers found that in 2010, 394,000 startup businesses created 2.3 million jobs while the private sector shed 1.8 million jobs overall.


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