Economic dynamism is the rate and direction of change in an economy.[1] This can include activities like the rate of new business formation, the frequency of labor market turnover, and the geographic mobility of the workforce.[1] Economists disagree on the usefulness of the term, with some calling it too ambiguous, and with others calling it useful to understand the degree of churn in the economy.[2] Proponents of the term note that it can describe an economy's ability to adapt to changing circumstances, such as changing consumer demands or the availability of resources.[2] Some experts correlate economic dynamism with the rate of business start-ups.[3] Rates of consumers changing banking or telecommunications service providers, especially as limited by switching barriers, have been cited as a major influence on economic dynamism.[4][5]
