Changes

<onlyinclude>'''Rising [[:Student Debt|student debt]][http://blogs.wsj.com/economics/2015/05/08/congratulations-class-of-2015-youre-the-most-indebted-ever-for-now/] may be limiting the ability for young entrepreneurs to access capital markets, and consequently stifling [[:Small Business|small business]] growth'''[http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2417676]. *Researchers at the University of Pennsylvania have discovered that start-ups and small businesses account for approximately 60% of net employment activity in the United States. *According to a [http://www.gallup.com/businessjournal/181592/potential-entrepreneurs-aren-taking-plunge.aspx| Gallup poll] conducted in February 2015, one of the biggest hurdles these companies and new entrepreneurs face, is identifying and accessing the capital to finance their ventures. *Following the financial crisis of 2008, it's no surprise that the top funding source for new business remains the personal savings accounts of founders.[http://www.entrepreneur.com/article/230011]  Personal debt therefore, becomes an integral component of the financing equation in starting a small business. Recent trends in small business growth have alluded to an underlying problem The strong negative correlation found in the ability for entrepreneurs to utilize their personal Pennsylvania study cites student debt capacity as a possible contributor to start a declining small businessgrowth[http://www.kauffman.org/~/media/kauffman_org/research%20reports%20and%20covers/2015/05/kauffman_index_startup_activity_national_trends_2015.pdf].</onlyinclude>

An increasing debt burden may be preventing would'''Debt May Have Prohibitive Effects on Young Entrepreneurs''' [[Image:StudentDebtPic.jpeg]] *A report from the Kauffman foundation shows the number of entrepreneurs ages 20-be 34 as having decreased from 34.3% in 1996 to 24.7% in 2014[http://www.kauffman.org/~/media/kauffman_org/research%20reports%20and%20covers/2015/05/kauffman_index_startup_activity_national_trends_2015.pdf].This translates to an overall decrease of over 40,000 entrepreneurs from exploring their business pursuits. *A gallup poll conducted in October of 2015[http://www.gallup.com/businessjournal/186179/student-loan-debt-major-barrier-entrepreneurship.aspx], found that as many as two million students cited loan debt as the principle reason they’d forgone or delayed plans to start a business. After the 2008 financial crisis, firm deaths had significantly exceeded firm births as calculated by the US census bureau. This phenomenon had gradually reversed itself in 2011, but has continued to miss the net average of 120,000 firm births experienced during the late 90's and early 2000's. Researchers speculate that fulfillment of a quarter of the entrepreneurial plans of the two million students’ pursuits would have been enough to return the 120,000 firm birth surplus.

==Future Outlook==The deleterious effects of student debt on small business growth are apparentAfter the 2008 financial crisis, firm deaths had significantly exceeded firm births as calculated by the US census bureau. Entrepreneurs are experiencing complications utilizing their personal debt capacity, and This phenomenon had gradually reversed itself in some cases2011, persuaded but has continued to forgo business miss the net average of 120,000 firm births experienced during the late 90's and early 2000's. Researchers speculate that fulfillment of a quarter of the entrepreneurial plans of the two million students’ pursuits entirely. Student debt continues would have been enough to rise at alarming ratesreturn the 120, and the economic impacts are pervasive000 firm birth surplus. An initiative targeting debt relief could have significant effects on The study conducted by the prosperity University of Pennsylvania is the first to explore the relationship between student debt and small business growth. Analysis from the models created in the United Statesstudy claim that an increase of one standard deviation in student debt, reduces small business formation for businesses with 1-4 employees by as much as 14%.