Positive improvements in business startup statistics

Entrepreneurs may wonder about the wisdom of starting new businesses at this point in time. National statistics may provide encouragement, as the overall number of businesses with employees rose by approximately 100,000 during the second quarter of 2015, which may reflect a changing economic environment that will hopefully also promote job growth in the next year.

New business formation began to slow during the 1990s, and the so-called “Great Recession” in the following decade exacerbated the issue. The current increase in businesses starting suggests that confidence is being restored among those who previously focused on avoiding risks and improving their credit standings. Experts indicate that the timing of this uptick is good because the labor force had been growing at a slower rate with weak productivity gains.

Finances play a major role in business development, and banking entities appear to be relaxing standards for those needing to borrow to start their businesses. During November 2015, nearly 23 percent of small businesses loans were approved, an increase of nearly 8 percentage points from 2012. It is important to note that the increase in new businesses is significantly greater than during the recession, but at approximately 400,000 new companies per year, current statistics for new business formations still fall short of the numbers before the recession struck.

An entrepreneur who is nervous about the financial and legal implications of starting a new company might begin with a solid business plan that can be refined to ensure the most successful start possible. It may be helpful to discuss one’s vision and plans with a business lawyer to ensure that the company is well-positioned to grow and succeed.

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