The birthrate for new businesses in the U.S. is sliding, down to an anemic 8% in recent years from 13% in the heady 1980s.
That’s the lowest point on record, according to a Census Bureau analysis released this week, partially funded by the Ewing Marion Kauffman Foundation.
Young companies less than 5 years old made up just 35% of all companies in 2010, compared to half of the pool 30 years ago – and the recession didn’t help, according to the report.
Instead of creating 20% of all new jobs, as they used to do, new businesses are now responsible for just 12%. That’s even though the 394,000 companies that emerged in 2010 generated 2.3 million jobs while older businesses struggled to keep hiring.
The decline, according the report, has occurred across all states, especially in the South, Southwest and West. And it may be continuing, according to recent data showing venture capital fund-raising plummeting 35% in the first quarter of 2012.