What happened to all the start-up businesses in the United
States?
The latest U.S. census data relays that there were 452,835
new businesses started in 2014. That’s down by about 50,000 that were started
every year from the late 1970s to the mid-2000s. It is long reported that new
businesses account for the greatest number of new jobs. But none of that is
booming now, and hasn’t been since the Great Recession ended. People seem wary
of getting into something that could crash cause them to lose money.
Start-Ups and Hiring
Start-ups generally hire less people than the big brand
stores and businesses. Major companies are
seen aggressively recruiting and gaining new staff. They have the capabilities
of utilizing outsourced vendors, some domestic and some foreign. Small
businesses do not have this ability.
Restrictions
Other factors which prevent an entrepreneur from starting up
are the mind boggling regulations in the U.S. Many businesses also insist a new
employee sign a “non-compete” clause that prevents them from leaving and
starting up their own company, for months or even years. With so many
restrictions and stringent regulations, it is no wonder there are less new
businesses than in previous years.
Future for Start-Ups
Many of the most successful start-ups were begun by an
entrepreneur in their 30s. The Millennial Generation is rounding that corner.
Generations X and Y are already there. The US Department of Labor notes there
is an uptick since 2014 in new businesses. US Media Studios also notes that
there are some steps established businesses and local, state and the federal
government can take to spur new business growth: loosen up on the “non-compete”
clauses, offer new business owners some tax breaks, give entrepreneurs support and
financing if requested.
America is a great place to start a new business. If this is
your dream, just go for it. Start very small and let it grow.
