Declining Business Dynamism in the United States

Si l’on veut être compétitif, il faut connaître nos compétiteurs, les États-Unis étant notre principal client, mais aussi notre principal compétiteur.

Il semble que nous ne sommes pas les seuls d’avoir de la difficulté à créer des entreprises.

1.      L’entrepreneuriat se meurt, Québec : 92,000 emplois perdus, Ontario : 60,600 emplois gagnés

2.      Les embûches d'être créateur de richesse au Québec

Imaginez, avec tous les avantages concurrentiels, une population de 316 millions ayant plus de 47.7 millions sur les foods stamps, donc, une main d’œuvre extra ‘cheap’, plus un salaire minimum qui s’approche de la famine et pourtant, il se perd plus d’entreprises, qu’il s’en crée.

Us Minimum wage

Donc, on peut comprendre comment le Québec a toutes les misères du monde à garder ces entreprises, d’autant plus, nos politiciens se préoccupaient plus à gagner des votes qu’à rester compétitifs.

Voici, quelques extraits du document.


Declining Business Dynamism in the United States: A Look at States and Metros

Business dynamism is the process by which firms continually are born, fail, expand, and contract, as some jobs are created, others are destroyed, and others still are turned over.

Research has firmly established that this dynamic process is vital to productivity and sustained economic growth.

Entrepreneurs play a critical role in this process, and in net job creation.

But recent research shows that dynamism is slowing down.

Declining Business Dynamism in the USBusiness churning and new firm formations have been on a persistent decline during the last few decades, and the pace of net job creation has been subdued. This decline has been documented across a broad range of sectors in the U.S. economy, even in high-tech.

Here, the geographic aspects of business dynamism are analyzed. In particular, we look at how these trends have applied to the states and metropolitan areas throughout the United States.

In short, we confirm that the previously documented declines in business dynamism in the U.S. overall are a pervasive force throughout the country geographically.

In fact, we show that dynamism has declined in all fifty states and in all but a handful of the more than three hundred and sixty U.S. metropolitan areas during the last three decades. Moreover, the performance of business dynamism across the states and metros has become increasingly similar over time. In other words, the national decline in business dynamism has been a widely shared experience.

While the reasons explaining this decline are still unknown, if it persists, it implies a continuation of slow growth for the indefinite future, unless for equally unknown reasons or by virtue of entrepreneurship enhancing policies (such as liberalized entry of high-skilled immigrants), these trends are reversed.

Research has established that this process of “creative destruction” is essential to productivity gains by which more productive firms drive out less productive ones, new entrants disrupt incumbents, and workers are better matched with firms.

In other words, a dynamic economy constantly forces labor and capital to be put to better uses.


Sauf, quand les banques centrales n’arrêtent pas d’imprimer de l’argent.

1.      L’usure de la monnaie par le maintien d’un système fractionnaire (monnaie non couverte à 100% par des actifs tangibles ou réels) et

2.      La stimulation du crédit via la gestion des taux.

Ø  Elles forcent des activités économiques devenues obsolètes à perdurer, à se maintenir.

Ø  Elles agissent, en cela, contre les forces individuelles de renouvellement d’une économie.

Ø  Elles freinent l’innovation.

Les entreprises obsolètes se maintiennent essentiellement grâce au levier opérationnel que constitue la baisse brutale du coût du capital (ou de la dépréciation de la devise), (1).

Ajouter, bien sûr, les bienfaits de la mondialisation heureuse.


A dynamic economy constantly forces labor and capital to be put to better uses, but recent evidence points to a U.S. economy that has steadily become less dynamic over time.

In fact, business deaths now exceed business births for the first time in the thirty plus- year history of our data.

business deaths

Perhaps most striking is the convergence among states and metros on the job reallocation rate—our broadest measure of overall business dynamism. Though exhibiting much more variability than our other measures (higher standard deviations), the data also show a steady decline in the standard deviation of these rates.

In other words, states and metros are increasingly performing much more alike on this higher variability measure of business dynamism; all of this within the context of falling dynamism overall.

States and metros

Conclusion

Overall, the message here is clear.

Business dynamism and entrepreneurship are experiencing
a troubling secular decline in the United States
.

Existing research and a cursory review of broad data aggregates show that the decline in dynamism hasn’t been isolated to particular industrial sectors and firm sizes. Here we demonstrated that the decline in entrepreneurship and business dynamism has been nearly universal geographically the last three decades—reaching all fifty states and all but a few metropolitan areas.