

The startup deficit - lkrubner
https://www.fedinprint.org/items/fednsr/707.html

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lkrubner
Despite the attention that is given to certain kinds of software startups, the
reality is that startups are dying out in the USA. The great era of startups
was many decades ago. As the Fed says:

" The first observation is the steady decline in the firm entry rate over the
last thirty years, and the second is the gradual shift of employment from
younger to older firms over the same period. Both observations hold across
industries and geographies. We show that, despite these trends, firms’ life-
cycle dynamics and business-cycle properties have remained virtually
unchanged. Consequently, the reallocation of employment toward older firms
results entirely from the cumulative effect of the thirty-year decline in firm
entry. This “start-up deficit” has both an immediate and a delayed (by
shifting the age distribution) effect on aggregate employment dynamics."

