The Silver Lining to the Drop in Startups

Photograph by Gregory Kramer/Getty Images

A long-term trend toward fewer business failures. That’s what you could have titled the recently released Kauffman Foundation-Census Bureau study (PDF) on U.S. entrepreneurship, entitled “Where Have All the Young Firms Gone?” While the report focuses on the decline in business creation, implicit in the data it discusses is a long-term decline in the failure rate of businesses.

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