It is harder and harder to find the entreprenuerial zeal- and consequently entreprenuers- in the United States. Even though major metropolises like New York, San Francisco and Boston continue to flourish, a number of indicators has pointed out that large portions of America now lack the entreprenuerial zeal which propelled the country to economic prosperity in the last century.
According to a research organization, the Economic Innovation Group, almost 50 percent of business establishments growth during the 2010 to 2014 period happened in only 20 counties. This patchy performance when it comes to forming businesses comes amid a number of signs that the present United States of America is not the nation which was one heaven to start ups. This premise holds true when it is seen that the number of Americans employed in the technology sector was seen to shrink. The pace of creation of new businesses has also shrunk. Another sign of decreased dynamism is the specter of Americans changing jobs and moving between geographies much less frequently compared to in the past.
When one consults the reports published by Kauffman Foundation-an organization that tracks entreprenuership in the US- it is seen that the number of start up companies which employ a minimum of one person are second lowest level in 2013. It is 20 percent below the figures posted before the recession made its mark on the industry. It must be said, however, that there is an improvement since that time, with a rise in openings in the 2015 fourth quarter. This is the highest in 10 years.
This improvement is indequate to dispel the old air that encircles a major part of US businesses. The companies are now older and competition much less fierce. Market power is now being consolidated by a few big companies in a number of industries.
Research done by Jason Furman of President Barack Obama's Council of Economic Advisers, and Peter Orszag, a banker and an economist says the 50 largest companies in three quarters of US sectors increased their revenue share in the period from 1997 to 2007. Industries extending from finance and retail to even transportation has become more and more concentrated. Furman is the president of the council.
Furman further added that there is no doubt that fluidity is now much less in the American economy, whether it is the case of workers moving from one job to another or them entering and exiting the workforce.