Economy

Many Americans Forced To Start Companies Out Of Economic Necessity

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Conventional wisdom holds that America is one of the western world’s havens for entrepreneurship. And indeed, the Global Entrepreneurship Monitor’s 2011 report found that the United States has, at 12.3 percent, a higher portion of entrepreneurs with businesses less than three and a half years old than any of the other developed, “innovation-driven” economies. But The Atlantic’s Jordan Weissmann flagged another datapoint in the same report that’s a reminder of the country’s ongoing economic hardship and rampant inequality: In America, more of these nascent entrepreneurs went into business out of economic necessity — as opposed to trying out a new idea or innovation — than in most of the innovation-driven countries.