E
ven though the economy remains stuck in a recession, business appears to be booming in garages and at kitchen tables across the country–at least according to a new report from the Ewing Marion Kauffman Foundation. That report shows that rates of entrepreneurship are at its highest level in 15 years. The Kauffman Index of Entrepreneurial Activity finds some 0.34 percent of American adults started a business in 2010, resulting in about 565,000 new businesses.
Rates of entrepreneurship are highest among those without a high school degree, and also in some of the states that have been hit hardest by the housing bust. That suggests that this burst of entrepreneurship has some similarities with that of the early 90s, when the country was also in a housing-led recession. At that time, many of the tradespeople and construction workers who had been laid off from their jobs, and who owned their own tools, formed new businesses simply by hanging out shingles. Many of those businesses evaporated when the housing markets picked up again and these temporary entrepreneurs were again able to find employment.
To read the full, original article click on this link: Why Entrepreneurship is Booming, But May Not Last | BNET
Author: Kimberly Weisul
