The only thing I can think of here is that for all that we think of startups as being largely high-tech things, in reality a huge number of them are in the construction industry, in one way or another. In a word, subcontractors. And no one’s starting new granite-countertop installation companies right now. But still, startups are a decent proxy for the dynamism of an economy. And these charts don’t bode at all well, on that front.
Was going to say the same thing. The Small Business Administration (SBA)tracks a number of these 'new small businesses' which are job creation engines. Construction companies and restaurants generally lead the pack in their stats. Others have pointed out a large correlation between these companies forming and the availability of credit. Generally there is some level of capital cost to start and without functioning credit markets those businesses don't start.
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Very important graf at the end:
The only thing I can think of here is that for all that we think of startups as being largely high-tech things, in reality a huge number of them are in the construction industry, in one way or another. In a word, subcontractors. And no one’s starting new granite-countertop installation companies right now. But still, startups are a decent proxy for the dynamism of an economy. And these charts don’t bode at all well, on that front.
Was going to say the same thing. The Small Business Administration (SBA)tracks a number of these 'new small businesses' which are job creation engines. Construction companies and restaurants generally lead the pack in their stats. Others have pointed out a large correlation between these companies forming and the availability of credit. Generally there is some level of capital cost to start and without functioning credit markets those businesses don't start.