America?s trillion-dollar student debt burden is killing small business creation, according to Bloomberg. From 2005 to 2010 self-employment for those 25 and younger fell by 19 percent; 23 percent of?respondents?to one survey stated that debt problems had put their small business plans on hold. The Bloomberg story discusses the case of Dr. Steve Sherick, who?s trying to expand his emergency-care business:
?It deters an entrepreneurial spirit when you already start four steps behind the starting line,? said Sherick. ?The student debt increases the risk for an entrepreneur like me and makes it harder to expand new?business, get loans and thus hire new people? [...]
?The burden of student debt probably places pretty big constraints on your viable options after graduation,? said Dane Stangler, director of research and policy at Kansas City-based?Kauffman Foundation, which focuses on supporting entrepreneurship. ?With more student debt and stricter bank lending, it really hinders the ability of students to take risks, start a company.
The problem is growing.?More and more young adults are graduating under a?crushing debt?burden, and older adults are increasingly on the hook?for it as well. As a result, the housing market is suffering, and so are start-ups, the?lifeblood of the US economy.
Where does it end?
[Ball?and chain image?courtesy of Shutterstock]
More Coverage from Via Meadia:
Source: http://blogs.the-american-interest.com/wrm/2013/06/06/student-debt-crushes-small-business-creation/
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