Entrepreneurship as a Key Resolution for Declining Business Dynamism

Abstract

This paper investigates the causes and effects of declining business dynamism in the United States and identifies potential solutions that can be utilized to stimulate business dynamism through a comprehensive literature review. While the main focus of this paper is on business dynamism, the research also addresses entrepreneurial challenges and incentives, since active entrepreneurial activity is critical to maintaining a dynamic business environment. The study explores six factors—insufficient access to capital, regulations and tax compliance, employee/employer mismatch, economic uncertainty, generational views of entrepreneurship, and effects of corporations and other large enterprises—that influence entrepreneurial activity.