When you work in the technology world it can feel like everyone is starting their own company.
But it turns out that there are fewer startups in the United States than there used to be.
That sounds crazy, right?
The US has seen a long-term decline in business births, less migration between states, and a growth in the economic power of incumbent companies
The Economic Innovation Group has released a report, Dynamism in Retreat, that shows the above: there’s a long-term decline in startups in the U.S.
Not surprisingly, there are a few states that buck this trend – and all but one are west of the Mississippi.
And here’s the real kicker.
What’s the key to *growth* of new business formation?
Is it technology?
Is it the presence of incubators, accelerators, angel investor networks, VCs?
No. Those things help, of course.
The key is…drumroll please: immigrants.
That’s right. Immigrants.
“Among the top performers in the study are states with a higher share of foreign-born workers than the national average, including Nevada, Florida and Texas.”
The Kaufman Foundation has found the same thing: immigrants are much more entrepreneurial. 2x more entrepreneurial.
…immigrants are twice as likely to become entrepreneurs as native-born Americans.
Startups are dying and immigrants are key to kickstarting new business formation.
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