It’s Not a Good Time to Start a Business

The Bloomberg Startups Barometer is a weekly indicator that tracks the overall health of the business environment for private technology companies based in the U.S.

The index peaked at 1545.32 on June 24, 2019.

On February 10, 2020 it fell to 833.74.

The Bloomberg Startups Index is down 25.45% from a year ago, but it’s down a massive 46.0% in just under 7 months.

This suggests it’s not a good time to start a technology business.

I propose it’s not a good time to be starting any business.

Mike “Mish” Shedlock

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andiduferense
andiduferense
2 years ago

Thanks for the information

sangell
sangell
4 years ago

Unless you are contractor or tradesman what business can you possibly open and not get crushed by a large corporation. Coffee shop? Oops Starbucks or Juan Valdez will get the best locations and put you out of business. There used to be small grocers but unless you are willing to put your life at risk and open in a ‘food desert’ you have 7/11 and other corporate goliaths operating in this sector too. Food Truck and beauty salon seem to be about the only niche big companies haven’t yet taken over.

TimeToTest
TimeToTest
4 years ago

This loose environment has created mega monopolies.

Just look at how many Fortune 500 companies Japan has produced in the last 20 years to see where this goes.

Maximus_Minimus
Maximus_Minimus
4 years ago

Probably figured that ten useless, personal data collecting social media companies have it covered.

On another note, is there a chance to implement a “go to comments” button, so one doesn’t have to scroll through the same post every time?

Mish
Mish
4 years ago

submitted

Scooot
Scooot
4 years ago

I’d still like to be able to post my own comment without having To reply to someone else’s.

magoomba
magoomba
4 years ago

Maybe good chili or pizza, but that takes talent.

magoomba
magoomba
4 years ago

Obviously you want to avoid all issues that have any involvement with production, industry, materials, selling, labor or work, transportation and delivery, retailing, consumer demand, or anything that involves effort, jobs, physical goods, or profit.
These types of businesses are no longer viable, actually doomed in today’s modern economy.
Stick only to tried and true monetary shifters and movers that have no messy, productive follies of any kind, but stay safely adhered to the gushing portals of the central banks. You will do fine.

RayLopez
RayLopez
4 years ago
Reply to  magoomba

True. I’m a gentleman farmer outside the USA (two different countries) and what I’ve observed is nowadays farming is subsidized to such a degree that if subsidies were removed it would be a completely different industry (likely consolidated to a handful of players). Likewise I think industrial production is like farming: it will get to the point unless you subsidize it (as is done with automobile and airplane manufacturing) you’ll only have one or two players left. I once read a single factory can produce all the lightbulbs needed in the world (of a certain type, wattage). Solve for the equilibrium…

TimeToTest
TimeToTest
4 years ago
Reply to  magoomba

I pretty sure we are doomed. Every country that has given higher social status the less you produce has failed.

But then again all countries have failed so there is that.

RonJ
RonJ
4 years ago

“Last month I made over $9,700 part time on the internet and bought a Ferrari…”

/sarc tag

RayLopez
RayLopez
4 years ago
Reply to  RonJ

And notice the chart posted by Mish looks like a unicorn…

Six000mileyear
Six000mileyear
4 years ago

When I scour the job boards, I see almost no openings for small (<200 people) tech companies. Most temp and perm job openings are with the military-industrial-complex. The better paying jobs within the MIC require security clearance.

lamlawindy
lamlawindy
4 years ago

Respectfully, I call BS, Mish. The VAST majority of businesses don’t get VC money to start. They either use savings or family capital.

Mish
Mish
4 years ago
Reply to  lamlawindy

You could be right. But we also may have some sort of confirmation from this: link to moneymaven.io

abend237-04
abend237-04
4 years ago

I’d like to see the source data and how they use it. The WeWork blow up alone might explain much of the moonshot excursion and implosion in the past year.

wootendw
wootendw
4 years ago

On the Bloomberg startup ‘barometer’:

“Our index incorporates both the money flowing into VC-backed startups, as well as the exits that are making money for investors. To smooth out some of the volatility, we calculated the average value for the last 12 weeks.”

Stuki
Stuki
4 years ago
Reply to  wootendw

If you want to start, or even run, a tech business (as opposed to a racket involving the Fed pumping up the price other clueless welfare queens are willing and able to pay for your empty promises), meaning a business aiming to develop and sell technology products and/or services for more than they cost to develop and deliver, you want to do that when costs of inputs are low. Not when they are at their highest.

Leave it to the mediocre leeches living large solely off of Fed welfare, to get that one exactly backwards too, though. Just like they do all else.

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