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U.S. Entrepreneurship Rate Down


Inc.:

U.S. entrepreneurial activity fell from 12.4 percent of the total workforce in 2005 to 9.6 percent in 2007, according to a joint study by Babson and Baruch Colleges.

Despite the decline, the nation’s rate of entrepreneurship was 50 percent higher than in other comparable countries, the study reported.

While more businesses were founded in the United States than in other countries last year, many aren’t expected to grow or create new jobs over the next five years.

Opportunity remained the biggest motivator for starting a business, though the percentage of entrepreneurs who launched a start-up out of necessity rose from 12.1 percent in 2005 to 15.6 percent in 2007, the study found.

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Comments

  • That is very interesting. I would think that we are about to see that trend reverse, as the weak economy causes many to look for other ways to create income.

  • Signs of downturn I guess..

  • I agree with Curt…many successful businesses have come from wanting to make a little cash on the side. At the same time, larger entrepreneurial ventures will have a hard time launching with the current credit freeze. It’s tough to get capital to cover start up costs these days.

  • I agree with Curt as well…one would think that with the weaker economy people would be looking for other way’s to be financial set, but the problem ultimately goes back to the weak economy and if the economy is doing terrible then not very many people are going to want to take the risk and plunge of investing their hard earned limited funds into a business that has no guarantee of making it.

  • When the economy of the U.S. get down,all of us got affected.
    As we incounter economic crisis, lots of entrepreneurs have shift to other businesses and others got it close.
    We just hope that the new elected U.S. President can find a solution about this problem.

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