“The Report of My Death was an Exaggeration”: Business Dynamism in the United States

Abstract The specific ways in which new businesses create jobs, stimulate productivity and enhance economic growth are complex. Amidst this complexity, a narrative has emerged that business dynamism has suffered a secular decline in recent decades that has continued to today. Our analysis, however, reveals that the so-called “secular trend” is more of a mechanical artifact than an indication of reduced entrepreneurial propensities to enter markets. Moreover, recent data indicate that both gross and net new establishment formation has been at historically unprecedented high levels.