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Better Economy Means Fewer Entrepreneurs

Job applicants meet potential employers at a jobs fair in New York
Job applicants meet potential employers at a jobs fair in New YorkPhotograph by John Moore/Getty Images

At a time when startup mania seems to have seized America, with locales from Iowa City to Burlington, Vt., anointed burgeoning tech hubs, it’s easy to forget one big reason people start their own ventures: economic necessity.

During the Great Recession, fewer available jobs led more Americans to launch businesses. Now that the economy is improving, fewer people are starting companies.