
Record Low Number of Startups in 2019 - highfrequency
https://medium.com/sv4ie/record-low-number-of-tech-startups-will-be-created-in-2019-why-4c6788a17e08
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HenryKissinger
Possible factors:

\- Too many people are struggling to repay their student loans

\- Too many people are one paycheck away from homelessness

\- People may be more risk averse than previously thought

\- The fact that health care is tied to employment deters people from starting
a business. Indeed, countries with strong social safety nets have more
entrepreneurs
([https://www.google.com/amp/s/amp.theatlantic.com/amp/article...](https://www.google.com/amp/s/amp.theatlantic.com/amp/article/541413/))

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secondbreakfast
I think these are all factors.

Tyler Cowen talks about this issue quite a bit. The stat he often quotes is
that new business creation is down by about half since 50 years ago.

Here's an interesting post he had on it:
[https://marginalrevolution.com/marginalrevolution/2014/08/wi...](https://marginalrevolution.com/marginalrevolution/2014/08/will-
the-recent-decline-in-entrepreneurship-be-reversed-by-demographic-forces.html)

It could be as simple as demographic shifts (which would explain its long slow
and consistent decline), or the other factors you and him mention might also
be playing an outsized role.

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redis_mlc
The article summary is that since we're in an economic boom, it's more
comfortable for now for people to work for the man than do a startup.

Although this is true, the other factors (high debt, health insurance, and
rent) will manifest themselves in the next recession.

For example, the 40 year-old US entrepreneur has to decide whether to work for
an established company, or do a startup and eat the $2,000/month health
insurance for his family. Or just move to Toronto. :)

Tyler's article has some provocative comments, but there's some nuggets in
there. The corner orange vendor might not be sightly, but within a block of
there is cheap rent.

