The long-term drop in entrepreneurship in states and cities across America

by Ryan Streeter on May 7, 2014. Follow Ryan on Twitter.

This new Brookings study (PDF) shows that the decline in new firm formation in America has been declining quite evenly across sectors and metro areas for decades. The authors write:

Overall, the message here is clear. Business dynamism and entrepreneurship are experiencing a troubling secular decline in the United States. Existing research and a cursory review of broad data aggregates show that the decline in dynamism hasn’t been isolated to particular industrial sectors and firm sizes. Here we demonstrated that the decline in entrepreneurship and business dynamism has been nearly universal geographically the last three decades—reaching all fifty states and all but a few metropolitan areas.

We’re growing less entrepreneurial as a nation:

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