NCPA - National Center for Policy Analysis

Business Start-Ups Fall

November 21, 2000

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 starts fell 10.2 percent from 1995 to 1999 -- to 151,016.
  • But the annual number of information technology 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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