A new study from the Ewing Marion Kauffman Foundation attempts to debunk the common notion that recessions lead to fewer new start-ups while economic booms encourage them. In fact, according to the study, the number of newly created start-ups remains steady throughout an economic cycle.
The report, authored by Kauffman Senior Analyst Dane Stanler and Senior Fellow Paul Kedrosky, analyzed data from the U.S. Census Bureau which tracked the annual number of new businesses from 1977 to 2005. The annual totals remain rather consistent, fluctuating by just 3% to 6% each year. (See chart below.) Within a year, the number of people starting new businesses each quarter remains even steadier.
Original Article: Recession? Economic Boom? No Effect On Start-Up Creation - Venture Capital Dispatch - WSJ
Author: Scott Austin
