New Information Says U.S. Supportive For Small Business Despite High Failure Rate
Written by Jenna Weiner
Despite high failure rates, the U.S. continues to be a conducive environment for small business startups and venture capital funding.
A new report from the Organization for Economic Co-Operation and Development shows that while it's hard to survive, the news for entrepreneurs isn't all bad.
The report, Entrepreneurship At A Glance 2011, published annually by the OECD, said that the United States does well in creating new business, especially construction, professional services and retail. The country ranks fourth in terms of ease of starting a business on an administrative level, according to the report.
Venture capital funding is also very good, the report said. It ranks second to only Israel at 0.08 percent of GDP.
Although there is a lot of support, there are still a high number of businesses that end up collapsing and falling into bankruptcy. The report said the rate of business failure peaked during the financial crisis and has not dropped much since.
According to the U.S. Courts website, bankruptcies were up in the one-year period ending in March of this year compared to last year. This year, there were 1,571,183 bankruptcies filed compared to 1,531,997 in 2010.
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