A Decline in American Entrepreneurship

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    Apr 02, 2011 12:36 AM GMT
    Normally the exact opposite happens during a recession.

    http://economix.blogs.nytimes.com/2011/03/31/a-decline-in-american-entrepreneurship/

    Young businesses (not small businesses, despite what politicians may tell you) are the biggest engines of job growth. With so few businesses forming, hiring is staying very depressed. And the main problem in the job market is not layoffs — which are at a record low — but new hiring.

    economix-30businessdecline-custom1.jpg


    While the Obama Administration has had some interesting ideas, that they would lump the startup visa into the broader can of worms that is immigration reform is disappointing:

    http://techcrunch.com/2011/03/30/startup-visa-d-o-a-and-startup-america-just-a-giant-press-release/

    ut Chopra dropped a bombshell at the Economist event. He said that the President would only support the Startup Visa in the context of “comprehensive immigration reform”. What this means is that the legislation will be lumped in with toxic debates about illegal immigration and will be held hostage to other interests.

    There is reason to be concerned about the plight of the 12 million unskilled workers who are in the U.S. and lack documentation. But there is a lot of anger and other emotion in these debates. Opponents of comprehensive immigration reform say that it will provide “amnesty” to people who broke the law. Supporters argue that there are humanitarian concerns, and that we need these hard-working people to do jobs that Americans don’t want. Regardless of what is right or wrong, there is almost no chance that this contentious issue will be resolved until after the next elections—which means that the Startup Visa could be Dead on Arrival
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    Apr 02, 2011 12:51 AM GMT
    Interesting articles. I would venture a guess it's got something to do with tight capital markets.

    I'm trying get financing now for a project. The financials are a slam dunk, no brainer....but even hard money lenders are playing it slow and cautious.

    So I sit and wait it out.
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    Apr 02, 2011 5:13 AM GMT
    White4DarkerFL saidInteresting articles. I would venture a guess it's got something to do with tight capital markets.

    I'm trying get financing now for a project. The financials are a slam dunk, no brainer....but even hard money lenders are playing it slow and cautious.

    So I sit and wait it out.


    I suspect there's a large raft of issues with the availability of financing being one of the issues... that being said, there are a raft of businesses that no longer require the level of financing that were required before (e.g. you can code a web service or product and have it hosted "in the cloud"). With every iteration of markets, it has gotten increasingly cheaper to create and startup a business so the fact that people aren't starting them I think is a very troubling trend.