Start-Ups--Sign of Hope in Midst of Decline in US Productivity Growth

Seemingly in answer to a previous HBR article, “Do Startups Really Create Good Jobs?” and the studies it cited, HBR published a new article, “The US Startup Economy Is in Better and Worse Shape Than We Thought”, referencing a paper published by MIT researchers that addressed the health of American entrepreneurialism.  The paper focuses on not just the number of start-ups in an area—but the quality of these startups—a novel concept.  They refer to “innovation enterprises”—as those startups that are likely to grow and multiply adding many more employees.  They in turn graphically plot areas that will likely prosper. 

The paper’s authors ultimately argue that American entrepreneurialism is not in decline, as measured by quality of new ventures—not quality. They also challenge the assertion of top economists (Summers and Robert Gordon are cited) that we are facing decline in economic growth (more correctly—a decline in productivity growth).  The authors argue that there has been steady growth in entrepreneurialism.  So while this growth can't cover for the whole economy—it does, the authors argue, provide some potential, a bright light of hope in the face of economic doom—or rather the clearly documented decline in productivity growth in the US economy and around the world.