~ The Economy ~

August4

Why It’s Worrying That U.S. Companies Are Getting Older

From the article:

Older firms are increasingly controlling the largest market share in different sectors of the economy, according to a paper by the Brooking Institution’s Robert E. Litan and Ennsyte Economics’s Ian Hathaway. By 2011, the portion of U.S. businesses aged at least 16 years reached 34%, compared to 23% in 1992. Moreover, those mature companies went from employing only 60% of private-sector workers in 1992 to employing nearly three quarters of the private-sector labor force in 2011.

….. it has become more difficult for younger companies to survive and compete with the bigger ones. Business failures are more frequent and likely among start-ups, which may account for the fall in business creation after the 1990s. The economy has grown more advantageous for incumbent firms and less helpful for fledgling ones.

http://blogs.wsj.com/numbers/why-its-worrying-that-u-s-companies-are-getting-older-1652/

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Posted August 4, 2014 by Sue Says in category In the News

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