Wednesday, February 15, 2012

U.S. startups hits 25-year low

Another grim milestone courtesy of the Obama administration.
Unemployed Americans who started businesses last year was the lowest in at least a quarter-century.

In 2011, 3.3% of out-of-work Americans started businesses, compared to 4.7% in 2010. But recent start-up activity is anemic compared to 1989 when 20.3% of unemployed were starting businesses. Until 1997, start-up activity was typically in double digits.

“Basically, it was not a very inviting environment for would-be entrepreneurs,” said John A. Challenger, CEO of Challenger, Gray & Christmas. “While big business definitely began to reap the benefits of the recovery in 2011, conditions were not nearly as fruitful for existing small business, let along those attempting to get up off the ground.”

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