Few New Businesses Started in 2010

Posted by pathenry123 under Startups
From http://smallbusinesscommunity.blogspot.com 5237 days ago
Made Hot by: DebMark on July 22, 2010 4:55 pm

I just read a rather depressing piece of information: for the first half of 2010 the rate of new business start-ups was the lowest it's been in 24 years. According to a blog post for the Wall Street Journal "the 3.4% first-quarter start-up rate and the 3.9% in the second quarter mark the lowest first-half since (executive coaching firm Challenger, Gray & Christmas) started recording data in 1986." The reason for such a dramatic decrease from last year is less than obvious:

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Comments

Written by jakeadams
5217 days ago

Interesting piece. Contradicts other data I have see but nonetheless, very interesting. One reason for the lower amount of start ups could simply be the lack of funding banks are now willing to give. Thanks.

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Written by drewberryg
5236 days ago

I hate the research pieces when it is not a true research body, the results are always skewed purely to promote their services

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Written by CIKMarketing
5236 days ago

Interesting report. Potentially people are being more cautious, or have less desposable income to take the "risk" of starting their own business. Our official business is less than a year old (although we've been doing freelance work forever). People are still starting businesses, but just as with everything else, it seems people are being careful with how and when they spend their money these days.

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Written by ShawnHessinger
5237 days ago

Pat,

I read this one too. I wondered a couple of things when I looked at it:

1. The report the story is based on was compiled by an outplacement and executive coaching agency making me think they have a vested interest in producing data promoting employment rather than entrepreneurship. (So is this just data compiled to market their service?)

2. If fewer people are choosing small business startup over employment, this may mean the job market is improving but also that there is increased competition in the job market meaning you still may be better off starting a business rather than heading back into the job market.

Just my two cents.

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