www.breaie.com by:Breaie
Our country is founded on the concepts of being entrepreneurial and pioneers which valued self-sufficiency and freedom which has shaped this country to what it is today. New business startups have always been viewed as the driving force of the economy. New businesses have previously overwhelmingly created innovation that increases productivity and economic growth.
Unfortunately, over the years ideas towards business startups changed which has stifled the economic engine of the USA. The regulations, reporting requirements, possibility of lawsuits, high startup costs, and high taxation on businesses make taking the risk on a startup unlikely for most people.
To prove that our heritage is changing, here some interesting verifiable proof of the decline of business startups. Reports show that the USA startup rate for new businesses have been falling for decades now.
Census data reports that between 1978 to 2013 show declines across all types of industries in every area of the United States. The Census data also points out that new business startups are declining nationwide.
Frightening trends show that businesses are dying off without new businesses being created to take their place. Rural areas have nearly a zero-percentage possibility of creating any entrepreneurial activity at this point in time now.
If your city has a large population of chain stores and franchised businesses, then the likelihood of the startup rate will be much lower.
I don’t want to be all doom and gloom. Here’s how I interpret the information. The Census counts new startups with at least one employee on the payroll. If the owner is the only employee, they are not counted as a true business. The entrepreneurial spirit is still alive and well but in a different form in our new economy. People just need to look in new places for this type of activity. There are now a record number of solo-prenuers who work for themselves in the Uber economy. They have a specialized skill that they can attract contract work. A solo prenuer is a person that just works for themselves and could possibly not have a business entity in place to hang their shingle under. They often work as self-employed because they take on contract jobs of short duration and work alone on these projects for businesses. They frequently don’t bring in enough work to hire a team of employees, but they may subcontract some work out to another solo preneur. Some like the freedom of a contract job, but for most these types of jobs are their only option.
The possibilities are endless online. People online are blogging, creating new websites, Youtube video content creators, selling online on Amazon or Ebay. There are other examples of solo-prenuers running an online business to generate an income. Some have multiple online businesses for income. Are these people making money online? I would have to assume so, but I am not for certain.
We do know for certainty that without entrepreneurs taking risks, the economic outlook will remain stagnant.
Sources:
https://www.bls.gov/bdm/entrepreneurship/entrepreneurship.htm