American business start-ups fall but I.T. keeps growing

Total business start-ups in the U.S. have fallen since 1995. But the information technology sector has kept roaring forward, according to Dun & Bradstreet.

  • The annual number of new business starts fell 10.2 percent from 1995 to 1999 – to 151,016.

  • But the annual number of information technology new business starts jumped 42 percent over the period – to 10,795.

  • Meanwhile, the average number of jobs created by information technology start-ups rose to 8.5 – versus 6.1 created by starts in general.

  • Starts in computer-related industries have plateaued since 1997 – but communications-related industries are still spawning new ventures at a sharply rising rate.

    Last year, starts in the latter sector – which includes both communications equipment and services – created an impressive 10.6 jobs per venture.

    Source: Gene Koretz, Startups: Where the Action Is, Business Week, November 27, 2000.

    For more on Employment

  • Help FMF promote the rule of law, personal liberty, and economic freedom become an individual member / donor HERE ... become a corporate member / donor HERE