Home > DCU Ryan Academy for Entrepreneurship, Propeller Venture Accelerator > Kauffman Report Highlights ‘Jobless’ Entrepreneurship Growth

Kauffman Report Highlights ‘Jobless’ Entrepreneurship Growth

According to the “Kauffman Index of Entrepreneurial Activity,” a leading indicator of new business creation in the United States, 0.34 percent of American adults created a business per month in 2010, or 565,000 new businesses. This is consistent with the 2009 figures and represents the highest level of entrepreneurship in the U.S. over the past decade and a half.

But, and it is a big but, the quarterly employer firm rate has dropped from 0.13 percent in 2007 to 0.10 percent in 2010. This would seem to suggest that many new entrepreneurs are actually what could be called ‘lifestyle’ entrepreneurs; those who are employing themselves and maybe family or friends, with no objective to grow the company substantially. Other statistics support the ‘last resort’ level of entrepreneurship activity; the report reveals that entrepreneurship growth was highest among 35- to 44-year-olds, rising from 0.35 in 2008 to 0.40 in 2009. The oldest age group in the study (55-64 years) also experienced a large increase in business-creation rates from 2008 to 2009, contributing to a two-year upward trend to 0.40.

Capturing new business owners in their first month of significant business activity, the Kauffman Index of Entrepreneurial  is the earliest documentation of new-business development across the United States.

The report also showed that entrepreneurial activity increased slightly for men and decreased slightly for women. For men, the entrepreneurial activity rate increased from 0.43 percent in 2009 to 0.44 percent in 2010. The female entrepreneurship rate decreased from 0.25 percent to 0.24 percent. Not the right trend to celebrate on International Women’s Day.

The Ewing Marion Kauffman Foundation was established in the mid-1960s by the late entrepreneur and philanthropist Ewing Marion Kauffman. Based in Kansas City, Missouri, the Kauffman Foundation is among the thirty largest foundations in the United States with an asset base of approximately $2 billion.

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