CBO Report: Federal Policies in Response to Declining Entrepreneurship
January 4, 2021
This Congressional Budget Office report offers policy recommendations and may be of interest to SBIA members.
According to the report, “Entrepreneurship in the economy has declined significantly over the past four decades. The rate at which firms were created decreased from 10 percent of all businesses in 1982 to 8 percent in 2018, and the share of employment belonging to new firms (those less than five years old) fell from 14 percent to 9 percent over that same period… If policymakers wish to spur entrepreneurship, they could put in place measures to give new firms greater access to financing or provide more financial support for the development of new technologies to those small businesses that are likely to be innovative.”