Business Death Rate Higher Than Birth Rate

This is perhaps one of the single most important issues facing the United States and our futures.

What contributes to these two things:

Government Bureaucrats and attorneys! These groups typically stifle more growth in this country than any other. No offense to HOD.

None taken

These rates have to be cyclical, right? I would expect that the rates cross during recessions (35 years dates to 1979), and again during recovery. I would think that skills, innovation, banking and finance, taxes and regulation are among the biggest factors aside from the general health of the economy in these trends. I'd be interested in a deeper analysis of which of those is the biggest problem here.

But, this should be the single most important graphic used during the next presidential campaign...



edit: added banking and finance to my list above.

I'd argue the biggest factor is the overall debt obligation in the primary demographics creating new businesses.

It's either that or the overall risk involved. However, that would seem to run contrary to market principles. When the economy is down there is more opportunity for the entrepreneurial, which is part of the force that creates the overall cycle.

An individual's ability to have capital to begin with presents the first challenge.

Seeing how the average American does not have $250 to their name without having to take a cash advance on a credit card greatly hinders the capital issue. This is due to debt.

Then you have the struggle of Limited Partners or Venture Capital investment possibilities. This is a very difficult avenue to pursue and attain what is needed as well.

(02-06-2015 12:18 PM)South Carolina Duke Wrote:  An individual's ability to have capital to begin with presents the first challenge.

Seeing how the average American does not have $250 to their name without having to take a cash advance on a credit card greatly hinders the capital issue. This is due to debt.

Then you have the struggle of Limited Partners or Venture Capital investment possibilities. This is a very difficult avenue to pursue and attain what is needed as well.

I don't know if this is necessarily true. The best businesses out there for the economy are the ones that are 'grass roots' and create value out of something that didn't exist before. It's not the Elon Musks out there with massive capital investments etc. It's the guy starting a business out of his garage.

But, I get what you are saying about barriers to entry. That is a problem.

For one, incorporation and taxation laws can be complex for somebody who knows nothing about it.

I'm wondering if student debt is playing a part? I mean, intuitively I'm thinking that the young are more likely to take the risks associated starting a new business, and that with a big fat student loan in their ledger are unable to get any capital in their ideas.

Even if student loans only represent 10% of the barriers out there being faced by folks who would otherwise start a business, I think it is higher BTW, then removal of 10% of the barriers would be a smart move and strongly pro-business.

...been saying this for as long as I can remember....

the 'dumbing down of the gene pool' is a huge problem moving forward.....

scary are the many reasons.....not going to get into the 'why'... it's a fkn book in itself.....

HOD,

I agree concerning the Cottage Industry aka garage businesses, however, not all of them include a utility trailer and a leaf blower. Yes, they involve capital $$.

PS- If we were to wipe away all the GSL debt, then that would make the "housing bubble" from 2008-11 look like a drop in the ocean as far as crippling this country financially!

(02-06-2015 01:27 PM)South Carolina Duke Wrote:  HOD,

I agree concerning the Cottage Industry aka garage businesses, however, not all of them include a utility trailer and a leaf blower. Yes, they involve capital $$.

PS- If we were to wipe away all the GSL debt, then that would make the "housing bubble" from 2008-11 look like a drop in the ocean as far as crippling this country financially!

It won't though because of the nature of the debt itself. Much of it is government backed and there is no market in various forms of collateral, like houses, to upset since it is essentially unsecured debt. It's paper debt on nothing.

The effect would be to add to the government deficit but it would have minimal effects in terms of the markets.

Debt,...Deficit....either one is BAD! The only way anyone could rationalize that would only mean that said individual has no money/net worth of their own and it just doesn't matter! If your outgo is greater than your income,...then your upkeep will be your downfall! This counts for individuals as well as countries!

just a sniglet of gene pool lunacy.....

pronounce the following name phonetically (....the dude just pled guilty to arson)

"Aqcuialius"