Although the rate of new business creation dipped during 2011, and startup founders remained more likely to fly solo than employ others; entrepreneurship seems to be alive and well in the United States. “Kauffman Index of Entrepreneurial Activity” –a leading indicator of new business creation in the United States is published annually says so…
The Index shows that 0.32% of American adults created a business per month in 2011 –yes, it’s a 5.9 percent drop from 2010, but it is still among the highest levels of entrepreneurship over the past 16 years!
While the Gen-Y startup-founders seem to receive the most attention as celebrities, entrepreneurship growth was highest among 45- to 54-year-olds, rising from 0.35% in 2010 to 0.37% in 2011. The youngest group (aged 20 to 34) also showed a slight increase.
In contrast, the 35- to 44-year-old and 55- to 64-year-old groups experienced declines in entrepreneurial activity rates from 2010 to 2011.
“Entrepreneurial activity rates reflect changing demographics,” said Robert W. Fairlie, the study’s author and director of the master’s program in applied economics and finance at the University of California, Santa Cruz. “Despite a slight decline in entrepreneurial activity rates this year, the share of new 55- to 64-year-old entrepreneurs has risen from 14.3 percent in 1996 to 20.9 percent in 2011 due to an aging U.S. population.”
While the Western region had the highest entrepreneurial activity, rates decreased in all regions except the Northeast. Florida was among the top 12 States for highest Entrepreneurial Activity.
Jobs may be suffering, but more folks are thinking entrepreneurial, and this is good news indeed!