Changes

It's clear that the The American perception of entrepreneurship and innovation is a an overwhelmingly positive one; Americans believe not only that there are good opportunities for starting a business, but also that they have the capabilities to start one themselves. [http://www.forbes.com/sites/elainepofeldt/2013/05/27/u-s-entrepreneurship-hits-record-high/#7144d97d73aa] The Global Entrepreneurship Monitor U.S. Report found that 43% of Americans believe there are good opportunities for entrepreneurship, and that 56% of American adults believe they have the capability to start a business. [http://www.babson.edu/news-events/babson-news/PublishingImages/babson-gem-info-graphic-692.png] But recent trends tell a more sinister story. Many studies report sustained declines in entrepreneurship and business dynamism across the U.S. economy. [http://www.kauffman.org/~/media/kauffman_org/research%20reports%20and%20covers/2014/02/declining_business_dynamism_in_us_high_tech_sector.pdf%20Kauffman] Though many Americans view the high-tech sector as the pinnacle of entrepreneurship and innovation, the Kauffman Foundation found the recently documented secular declines in business dynamism that occurred broadly across the U.S. economy over the past two decades also occurred in the high-tech sector in the post-2000 period. [http://www.kauffman.org/~/media/kauffman_org/research%20reports%20and%20covers/2014/02/declining_business_dynamism_in_us_high_tech_sector.pdf%20Kauffman] This article aims to ask why Americans have an arguably naive perception of the state of entrepreneurship in high tech sectors, what happened in the American economy to cause the decline, and the impacts of the slowdown on economic growth.