Although America has a deserved reputation as a country at the cutting-edge of innovation, fuelled by entrepreneurial vim, in recent years some economists have worried that this reputation no longer holds true. Startups have formed a smaller and smaller portion of the business landscape: in 1982 some 38% of American firms were less than five years old; by 2018, 29% were that young. The share of Americans working for startups likewise fell. Silicon Valley sizzled with high-tech wizardry, but its giant companies hoarded the best researchers, leading to a slower spread of new ideas throughout the country. Researchers, including at the Federal Reserve, pointed to this decline in dynamism as a cause of weaker productivity growth.<\/p>\n
Suddenly, what was old appears to be new. An array of data indicate that Americans are rediscovering their go-getting spirit. The most striking evidence comes from applications to form businesses, a proxy for startup activity. These soared in mid-2020, when America was still in the grip of covid-19. The initial surge was easy to dismiss: some of the new firms were scams, trying to profit from the government\u2019s financial assistance for small businesses; others reflected the strangeness of the moment, with companies set up to import face masks or flog hand sanitiser.<\/p>\n
But now, well after the pandemic has faded away, the surge continues….Last year applications to form businesses reached 5.5m, a record.<\/p>\n
Read it all<\/a>.<\/p>\n America is in the midst of an extraordinary startup boom https:\/\/t.co\/X5mmbAri7B<\/a> from @TheEconomist<\/a>: \u201cA striking feature of the boom is its geographic spread\u2026the new wave has fanned out to smaller cities around the country.\u201d #RiseOfRest<\/a><\/p>\n — Steve Case (@SteveCase) May 12, 2024<\/a><\/p><\/blockquote>\n \n