Business Start-Ups Decline 7% in ’98

U.S. business start-ups declined by 7% in 1998, pushing down employment generated by new companies during the year, according to Dun & Bradstreet Corp. Dun & Bradstreet’s survey, conducted since 1985, showed 155,141 new business start-ups last year, down from 166,740 in 1997. The drop in business starts pushed down the number of new jobs created by companies reporting employment numbers to D & B. Last year, 906,105 jobs were created, compared with 939,310 in 1997. Dun & Bradstreet chief economist David Kresge said the strength of the U.S. economy last year may have held down start-ups. “In a weaker economic environment, with rising unemployment rates, employees laid off by larger firms are forced to go it alone, pushing up new business starts,” he said. In California, business starts declined 4.1% to 21,582 and created 120,128 jobs, a 4.4% decrease. Nationally, business starts declined 11% among wholesalers, 9.6% among manufacturing firms and 8.9% among retailers. In the service and retail industry, 48,500 new service firms were created and 33,151 new retailers opened their doors. The only category showing an increase in start-ups over 1997 was agriculture, forestry and fishing--with 7.7% more business start-ups in spite of low commodity prices that have cut farm incomes.