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.
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Publish date: 04 December 2000
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