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Fewer Business Startups Are Based In Small Towns And Rural Areas

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Silicon Valley's capital city San Jose, California as seen in this aerial photo is undergoing an urban development revolution calculated to keep it as the thriving heart of a region renowned for technological innovation. (Helene Labriet-Gross/AFP/Getty Images)
Silicon Valley's capital city San Jose, California as seen in this aerial photo is undergoing an urban development revolution calculated to keep it as the thriving heart of a region renowned for technological innovation. (Helene Labriet-Gross/AFP/Getty Images)

A new analysis from the bipartisan Economic Innovation Group found that small towns and rural communities are much less likely to generate new business startups than in the past. The research found that startup growth is primarily based in a small number of areas, from Silicon Valley to New York and parts of Texas.

Here & Now's Jeremy Hobson speaks with Derek Thompson, senior editor at the Atlantic, about what's behind the trend.

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This segment aired on May 23, 2016.

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