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The State of American Entrepreneurship: New Estimates of the Quality and Quantity of Entrepreneurship for 32 US States, 1988-2014


  • Jorge Guzman
  • Scott Stern


Assessing the state of American entrepreneurship requires not simply counting the quantity but also the initial quality of new ventures. Combining comprehensive business registries and predictive analytics, we present estimates of entrepreneurial quantity and quality from 1988-2014. Rather than a secular pattern of declining business dynamism, our quality-adjusted measures follow a cyclical pattern sensitive to economic and capital market conditions. Consistent with the role of investment cycles as a driver of high-growth entrepreneurship, our results highlight the role of economic and institutional conditions as a driver of both initial entrepreneurial quality and the scaling of new ventures over time.

Suggested Citation

  • Jorge Guzman & Scott Stern, 2016. "The State of American Entrepreneurship: New Estimates of the Quality and Quantity of Entrepreneurship for 32 US States, 1988-2014," NBER Working Papers 22095, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:22095
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    Blog mentions

    As found by, the blog aggregator for Economics research:
    1. Understanding Business Dynamism
      by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets on 2017-04-24 17:04:34


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    Cited by:

    1. Baylee Smith & Angelino Viceisza, 2018. "Bite me! ABC’s Shark Tank as a path to entrepreneurship," Small Business Economics, Springer, vol. 50(3), pages 463-479, March.
    2. Sari Pekkala Kerr & William R. Kerr, 2019. "Immigrant Networking and Collaboration: Survey Evidence from CIC," NBER Chapters, in: The Roles of Immigrants and Foreign Students in US Science, Innovation, and Entrepreneurship, pages 173-205, National Bureau of Economic Research, Inc.
    3. Ryan Decker & John Haltiwanger & Ron S. Jarmin & Javier Miranda, 2018. "Changing Business Dynamism and Productivity : Shocks vs. Responsiveness," Finance and Economics Discussion Series 2018-007, Board of Governors of the Federal Reserve System (U.S.).
    4. Kimberly Bayard & Emin M. Dinlersoz & Timothy Dunne & John Haltiwanger & Javier Miranda & John J. Stevens, 2018. "Early-Stage Business Formation : An Analysis of Applications for Employer Identification Numbers," Finance and Economics Discussion Series 2018-015, Board of Governors of the Federal Reserve System (U.S.).
    5. Andersson, Martin & Larsson, Johan P & Wernberg, Joakim, 2019. "The economic microgeography of diversity and specialization externalities – firm-level evidence from Swedish cities," Research Policy, Elsevier, vol. 48(6), pages 1385-1398.
    6. Sabrina T. Howell, 2017. "Reducing Information Frictions in Venture Capital: The Role of New Venture Competitions," NBER Working Papers 23874, National Bureau of Economic Research, Inc.
    7. Mercedes Delgado & J. Daniel Kim & Karen Mills, 2020. "The Servicification of the US Economy: The Role of Startups versus Incumbent Firms," NBER Chapters, in: The Role of Innovation and Entrepreneurship in Economic Growth, National Bureau of Economic Research, Inc.
    8. Henrekson, Magnus & Sanandaji, Tino, 2017. "Schumpeterian Entrepreneurship in Europe Compared to Other Industrialized Regions," Working Paper Series 1170, Research Institute of Industrial Economics, revised 29 Jun 2018.
    9. Olga Guseva & Anastasia Stepanova, 2019. "Startups In Russia: Ownership Vs. Performance," HSE Working papers WP BRP 76/FE/2019, National Research University Higher School of Economics.
    10. Kim, J. Daniel, 2018. "Is there a startup wage premium? Evidence from MIT graduates," Research Policy, Elsevier, vol. 47(3), pages 637-649.
    11. Guzman, Jorge & Kacperczyk, Aleksandra (Olenka), 2019. "Gender gap in entrepreneurship," Research Policy, Elsevier, vol. 48(7), pages 1666-1680.

    More about this item

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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