A downturn in the formation of new businesses has become a troubling trend that began even before the recession. The fixes might include programs to encourage small-business lending, or tax and regulatory changes designed to bolster the pipeline of venture capital and IPOs (initial public offerings of stock).
Another element might include nurturing the entrepreneurs and their ideas through incubator programs, mentoring, and visa rules designed to keep immigrants in the country after they earn advanced US degrees. Those immigrants are among the most likely people to be involved in startup ventures.