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.
[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.