Study: Startups are Slowing Down


There's been so much hemming and hawing about the economy and cautious optimism that it's hard to know exactly where things are at with it anymore.

However, a new study from the Ewing Marion Kauffman Foundation, which studies the impact of entrepreneurs on the economy, analyzed Labor Department and U.S. Census data to reveal some grim news: There's been a "slow job leak" going on since 2006.

OK, that sounds bad, but what exactly does it mean?

According to the report, "the new businesses that continue to generate the bulk of the economy's net job gains in recent years have been starting up with fewer workers than historic norms and are also adding fewer workers as they grow."

The growth that does happen, according to the analysis, doesn't keep pace with the lower employment levels that have been in effect because of the already suffering economy.

So, in other words. When people keep saying, "the economy's turning around," they're not exactly right, unfortunately. But if you're running a startup and want to do something about it, start creating positions!

Read the full report over at the Ewing Marion Kauffman Foundation.

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