Op-eds and Articles

Op-Ed: Why Experience, Not Funding, Matters More In New Bill To Help Startups

By / 3.20.2020

Small businesses are hurting everywhere and the pain is only going to intensify. What about new businesses? Will anyone start a new company during the COVID-19 crisis and emerging recession?

History says yes: several years ago we did an analysis at the Kauffman Foundation that found that over half the companies on the Fortune 500 list had been founded during a recession or bear market. We updated those numbers a few times and the finding was consistent.

There’s a caveat, of course: with one exception, those prior recessions and bear markets didn’t occur during a pandemic. (There was a recession from August 1918 to March 1919, overlapping with the Spanish flu.) So maybe this time is different.

Read the full piece here.