Do Student Loans Prevent New Small Businesses?

Student loan debt can get in the way of small business creation, report researchers.

"Given the enormous growth in the use of student debt in recent years, the issue of whether it may impact future small business formation is becoming critically important," Brent W. Ambrose says. Ken Teegardin/CC BY-SA 2.0

Student loan debt can get in the way of small business creation, report researchers.

Their recently updated study looks at student loan debt across the United States by county. Between 2000 and 2010, one standard deviation increase in student debt reduced small businesses by 14 percent, on average.