Weakness in entrepreneurship and small business: Challenges for U.S. employment

05/15/2013

Cliff Waldman, senior economist
Public dialogue on the multidimensional U.S. job growth challenge often overlooks the vital issues of entrepreneurial dynamism and the health of the small business sector. These are critical omissions. Research supports the importance of new businesses for employment recovery and employment expansion. This Issues in Brief spotlights two concerns. The entrepreneurial thrust to both private sector and manufacturing employment gains has been weakening fairly rapidly, a problem which appears to have begun well before the most recent recession. Second, small businesses have had a disturbingly tepid rebound from the 2007-2009 downturn, a problem shared by small manufacturers. Issues in Brief

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