Washington Post illustration; iStock By Jim Tankersley Americans in small towns and rural communities are dramatically less likely to start new businesses than they have been in the past, an unprecedented trend that jeopardizes the economic future of vast swaths of the country. The recovery from the Great Recession has seen a nationwide slowdown in the creation of new businesses, or start-ups. What growth has occurred has been largely confined to a handful of large and innovative areas, including Silicon Valley in California, New York City and parts of Texas, according to a new analysis of Census Bureau data by the Economic Innovation Group, a bipartisan research and advocacy organization that was founded by the Silicon Valley entrepreneur Sean Parker and small group of investors. That concentration of start-up activity is unusual, economists say. In the early 1990s recovery, 125 counties combined to generate half the total new business establishments in the country. In this recovery, just 20 counties have generated half the growth. The data suggest highly populated areas are not adding start-ups faster now than they did in the past; they appear simply to be treading water. But rural areas have seen their business formation fall off a cliff. Read the rest on Wonkblog. Map of the day Colorado's residents are especially likely to use alcohol and other drugs, according to a new federal survey. Keith Humphreys has more. Top policy tweets "SCOTUS opinion today in a nutshell - striking 2 jurors because they're black is 2 more than the Constitution allows" -- @AriMelber "Don't believe Wall Street and regulators when they say capital is money banks have to 'set aside' for a rainy day. https://t.co/yP83IlACb9" -- @pdacosta "Ebola Coordinator: Zika is coming, but we're far from ready https://t.co/qtuVuAa3KR" -- @Atul_Gawande |
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