The share of young companies has declined dramatically recently. Mitch Daniels, the President of Purdue University and the former Republican governor of Indiana, says he knows why. In a Wall Street Journal opinion piece, he places the blame on rising degrees of student debt.
However the data suggest that student education loans aren’t the only cause.
The fraction of teenagers who run their own companies has been declining for pretty much two-and-a-half decades. The Wall Street Journal reported that the business-owning share of households headed by a person beneath the age of 30 dropped from nearly 11 percent in 1989 to under 4 percent in 2013 – a far steeper decline than for households overall.