Wisconsin, not to mention other parts of the nation, is in need of startups. Washington, D.C.-based Economic Innovation Group released a study this week that found the number of businesses closing in Wisconsin is higher than the number of businesses being created. It analyzed U.S. Census figures to find that the state ran this deficit from 2010-14.
“Wisconsin has a really low startup rate — in fact, it has the 48th lowest startup rate in the country over the course of the recovery (from the Great Recession),” John Lettieri, EIG co-founder, told Wisconsin Public Radio. “That’s a concerning starting point. It gets worse when you look at the closure rate, the death rate of firms.”
The bad news is that there were only two metropolitan areas in Wisconsin with more new businesses than closures during the fiveyear period, according to Governing Magazine. The good news is that one of those is Eau Claire. Madison is the other.
“The quality of the jobs that have come back is not the same as what was lost during the recession,” Lettieri said. “We’ve lost quite a few middle- and highwage jobs to be replaced by a significant and disproportionate number of relatively low-skill, low-wage and even parttime employment. “What looks like profit as a reward for simple incumbency, that’s less market competition, fewer incumbents dominating industry.” Visit tinyurl.com/ ja7cwu9 for the report. Read the full story here.