Rate Of New Business Formation On Steady Decline, Even In Tech

Company size growing, fewer new competitors forming, number of small businesses shrinking. Start-up failure rate is increasing too. Happening in tech too. This isn't just the death of small town stores and pharmacies and shift to big chains. Read the whole thing. I suspect that computer and communications tech are behind this trend. Why I think this is happening: It is easier for a single company to sell into many markets because cheap communications, cheap shipping, lower trade barriers. Best company beats lower ranked companies that used to not compete directly. Large IT infrastructure with large amounts of developed source code base by established players serve as barrier to entry. Initial software development costs higher. Though the opposite argument can...
Source: FuturePundit - Category: Research Authors: Source Type: blogs