Measuring Business Creation in Canada and the United States

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This study examines business creation in Canada and the United States. Business creation refers to the process of starting a new enterprise and is an important aspect of entrepreneurship. Economic research outlined in this study reveals that business creation not only represents the commercialization of ideas, but also indicates dynamism -- the degree to which new businesses replace old ones -- in an economy. The process of new business creation increases competition and, thus, can help explain changes in productivity, innovation, and economic growth.

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