Starvin Larry

Bad news: “It’s hard to put into scale the collapse of new business formation. We have no precedent for that rapid and steep of a collapse.”  So said John Lettieri, co-author of a report on new business formation and co-founder of EIG. From Michael J. Coren at qz.com:

We’re supposedly living in the age of startups when people can create new businesses, enrich themselves, and employ their fellow Americans. That narrative, like much economic optimism these days, is now mostly a tale for coastal cities, and a tenuous one at best.

Fewer new businesses were created in the last five years in the US than any period since at least 1980, according to a new analysis (pdf) by the Economic Innovation Group (EIG), a bipartisan advocacy group founded by the Silicon Valley entrepreneur Sean Parker and others. Businesses that did form are also far more concentrated than ever before: just 20…