The Rate of New Employer Business Creation Remains Low

The Census Bureau recently released data on the number of new businesses with employees created in 2013, and the figures are disappointing. The rate of creation of new employer businesses in the United States remains depressed.

The Census Bureau’s Business Dynamics Statistics (BDS) database tracks the number of new employer businesses created every year going back to the late 1970s. Using BDS data, I created a chart (below) that shows the rate at which new employers are started every year, both as a fraction of the number of existing businesses with employees and per thousand residents.

The Rate of New Employer Business Creation Remains Low