Data on new business establishments

The Federal Reserve Bank of Atlanta has some very interesting data on the number and size of new business establishments (see here).  The graph below pretty much tells the story (click to enlarge).  The data show that "Not only has the number of new establishments declined, but the average size of new establishments has also tended to decline over time."

John Robertson (research department at the Atlanta Fed) says:

If small businesses, or more specifically new small businesses, are an engine of job growth in the United States, that particular engine has been getting less powerful. Between March 2009 and March 2010, new establishments generated 1 million fewer jobs than over the period from 2005 to 2007.