Many Americans long to be their own boss. Their yearning is as old as the Republic itself: Thomas Jefferson thought the ideal citizen was a yeoman farmer, whose economic independence allowed him to participate in civic life. For decades, 60% of Americans have said they want to be self-employed. Yet in recent years fewer than 10% have been.
That is now changing. As we report, America is in the midst of a small-business boom. It began during the covid-19 pandemic and has since picked up steam, fuelled by artificial intelligence, low hiring and the growing ease of starting small online shops on platforms such as Etsy, Shopify and TikTok Shop. In June the Census Bureau recorded more than 531,000 new business applications, a rise of 81% compared with the average month in 2019. Such factors have buoyed self-employment in Britain and France, according to Stripe, a payments firm. But it is America where the trend is most pronounced. It is a welcome one.
De redactie van NRC selecteert de beste artikelen uit The Economist voor een breder perspectief op internationale politiek en economie.
Small businesses are popular with politicians, but economists can turn up their noses. Many fail. Those that survive often suffer from low productivity: small American firms are only 70% as productive as big ones. In recent years much innovation has come from large „superstar” firms. Small companies often lack the digital tools and administrative efficiency that come with scale.
