Over at the Washington Post, Brad Blumer writes about something I've noted here frequently in the past: That new businesses, not small businesses, are the true job creation engine in the U.S.
So how does this country do on new business formation?
Not so good. Bumer cites a study that says we rank 23rd among developed countries, behind the likes of "countries like New Zealand, Iceland, the United Kingdom, Canada, Sweden and Norway. But we're also, a little unexpectedly, lagging behind countries like Hungary and Slovenia."
How could this be?
After all, many erstwhile U.S. startups — Google, Apple, Boeing, FedEx — are now the envy of the world. So why don’t we have more of them? Wimberly suggests that the thin U.S. safety net might be a factor. It’s easier, after all, to take a risk, quit your day job, and start a new business if you don’t have to worry about getting health-care coverage. One piece of evidence on this score: A 2010 RAND study found that Americans are much more likely to start new businesses as soon as they turn 65 and qualify for Medicare