Two economics professors have determined that the U.S. will suffer over a trillion dollars of lost business output due to the lack of new business startups in recent years.
Messrs. Prescott and Ohanian have determined that the number of new startups was 30% lower in 2011 (latest data) compared to the annual average in the 1980s in all industries, even including high tech. Bad news because new businesses boost employment and the economy as a whole.
Entrepreneurs complain that they are restrained by overregulation, too much taxation, lack of skilled workers and, of course, unavailability of financing.
While crowdfunding cannot help in the policy areas, it can certainly fill the financing gap left by the banking industry that still won’t lend unless the company doesn’t need the loan.
See the article here: http://online.wsj.com/articles/behind-the-productivity-plunge-fewer-startups-1403737197