The "Entrepreneurs" provide us with critical innovation and keep us at the forefront of global markets and they also create ways (for individuals)to gain financial independence. So why has the percentage of start-ups in the U.S. dropped significantly in the last 35 years? This is particularly worrisome in light of the healthy state of the stock market and the many new ways to raise capital. Without the impetus of more business formation, how will we ever lift up the 40 million people currently living below the poverty line... I think there are three factors contributing to the decline of entrepreneurship. For starters, the slow recovery of the economy and stagnant wage levels have caused widespread risk aversion, especially among millennials. With a trillion dollars of college debt weighing them down, they seek the security of a paycheck, even if the pay is low. While a majority (55%) hopes to start a business one day, their dreams remain on hold.
A second reason for the decline is the lack of an early introduction to the possibilities and benefits of starting a business. For the last several years, the emphasis has been mainly on postsecondary education. University and community college programs in entrepreneurship have proliferated. Top academic schools like MIT now offer courses such as "Entrepreneurial Finance" and "The Nuts and Bolts of New Ventures/Business Plans." At the University of Maryland, students can select from more than a hundred courses geared toward starting a business. And at the #1-rated Santa Barbara City College, an entire academic center is devoted to entrepreneurship and innovation. There's even an organization called the National Association for Community College Entrepreneurship (NACCE), which brings entrepreneurial programs at the community college level together to try and link traditional roles of workforce development with entrepreneurial development.
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