Two studies suggest the “head winds” that President Obama says are holding back employers are of his own making. His policies have sidelined a key job creator: the entrepreneur.
Historically, young startup firms have been a major job engine for the economy, particularly as the nation has emerged from recessions. But new federal data show the rate of business startups continues to fall in this recovery.
According to the Census Bureau, the startup rate, measured as a share of all firms, has plunged to 7% from 9% in 2008 and from 11% in 2006. The pace, moreover, is almost half the 1980s’ peak of 13%.
Of all the negative trends tracking this administration, this may be the most disturbing.
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