The Face of Entrepreneurship In the U.S.

My Venture Pad | The Face of Entrepreneurship in the US

avatar
0 0 votes
Share
The Face of Entrepreneurship in the US
by Jeff Cornwall on 11/21/2009 06:34 0 comments , 224 views
Categories: Startups
Tags: microsoft, entrepreneurial activity, accidental entrepreneurs, global entrepreneurship monitor, babson college

A couple of interesting studies came out this week that help us better understand the direction of entrepreneurship in our economy.

A study by Microsoft suggests the most of the new entrepreneurs today are either accidental entrepreneurs or at least not folks who had aspired to become an entrepreneur before the recession. The study found that about 70 percent of the respondents left their jobs to start their own businesses in the midst of the current recession.

The latest Global Entrepreneurship Monitor (GEM) report that looks specifically at the U.S. was just released by Babson College. It gives a very interesting snapshot of the real face of today’s American entrepreneurs.

The GEM study found that the total entrepreneurial activity actually increased in the US to 10.8% in 2008 from 9.6% in 2007.

Even though we know many of today’s entrepreneurs came to starting their ventures due to the economy, they are still seeking ventures out of opportunities they have observed rather than just starting something to make ends meet. The study found that 87% of US entrepreneurs started their businesses because of a business opportunity while only 13% started their businesses simply out of necessity.

However, even though these entrepreneurs see opportunity, they also see an increased risk of failure, which increased in 2008.

A finding that caught me somewhat by surprise was that the typical entrepreneur is getting older. The GEM study found that boomers are become more entrepreneurial, while the Millennials and the Gen X-ers are becoming less likely to start a venture. The results indicate a marked reduction (around 8% to 9%) in entrepreneurial activity for individuals in the 18-44 age group and an increase of a similar amount in the 45-98 age group.

The study did not differentiate the Millennials from the Gen X-ers. My anecdotal observations from our program and others is that the Millennials seem to be holding their own, and show signs of increasing their entrepreneurial activities over the coming years, while the Gen X-ers seem to be hunkering down trying to make ends meet through employment.

In a finding that sent chills down my spine, the study found that the size of the ventures entrepreneurs are thinking about is changing. From 2007 to 2008, the number of jobs entrepreneurs expected to create from their start-ups decreased among the smaller firms. Not a good sign of long-term employment growth.

The GEM results indicate a continuation of the trend toward a business service — and away from a manufacturing-economy. Looking at particular sectors of entrepreneurial activity, U.S. activity is more concentrated in the business services sector and less concentrated in the transforming sector than the activities of other countries in the innovation-economy group, for both early-stage and established firms. Another bad sign for the long-term economic outlook in the US.

Finally, in terms of financing, the number of adults reporting that they had invested in someone else’s business increased (to 5%), as did the amount they financed ($17,500); yet those numbers are countered by the precipitous decline in SBA lending. It is the private sector, not the government, that is keeping the entrepreneurial engine running in our economy.

Link to original post

Technorati Tags: startups, start up, entrepreneurship, Jeff Cornwall, microsoft, entrepreneural activity, accidental entrepreneurs, global entrepreneurship, Babson College, economy, Global Entrepreneurship Monitor (GEM), American entrepreneurs, Millennials, Gen X-ers, long-term employment growth, innovation-economy group, early-stage, established firms, long-term economic outlook, SBA lending, entrepreneurial engine,

Renewable energy, only a part of the puzzle

More Photos (2)

People listening to policymakers debate the nation’s energy future might think: Just erect a lot of wind turbines, and problem solved. Or install a bunch of solar panels, and let the sun do the work.  However, renewable energy alternatives present costs and challenges just like traditional energy sources — coal, natural gas, nuclear and hydropower.  (read World-Herald article)

Consultants: Innovation Campus jobs’ annual impact could be $267 million

After six months of nearly round-the-clock work by consultants and campus planners, Nebraska Innovation Campus’s final business development strategy and campus master plans were presented and approved today by the University of Nebraska Board of Regents.

Lincoln, Neb., November 20th, 2009 —

(read more UNL News Release)

For more information about Nebraska Innovation Campus and to view the most up-to-date versions of the plans, go to http://innovate.unl.edu.

Rising unemployment taxes could further hinder small business

Small businesses will suffer under their latest financial burden: The cost of rising unemployment itself.  States are being forced to increase state taxes on companies to pay for unemployment insurance claims.  Because small businesses create about 60 percent of new jobs, it could hamper the economic recovery as employers are already squeezed by tight credit, rising health care cost, wary consumers and a higher minimum wage.  (read more Omaha World-Herald)

Omaha & Lincoln seek grant to boost energy efficiency

The cities of Omaha and Lincoln will compete with between eight and 20 cities to participate in a federal grant program to make older buildings and home more energy efficient.  (read more)

SBA keeps cash flowing

Read the following article in the World-Herald regarding several entrepreneurs who took the “leap of faith” during the recession with the assistance of the SBA Nebraska District Office in Omaha and borrowed during the recession.   Ami Ebeid took a great leap of faith and bought her first small business, Horizon Dance,  and became a wholesaler of dance-themed bags.  She was able to buy her inventory with the $12,000 saved in fees that were waived under the stimulus guidelines.  Existing small business owners such as Kent and Ellen Junge were encouraged by their banker to get a SBA loan and expand their business, the Cookie Company, into the Westroads Mall.  Omaha.com – The Omaha World-Herald: Money – SBA keeps cash flowing

Technorati Tags: omaha.com, World-Herald, SBA, Ross Boettcher, Ami Ebeid, small business, friends & family, Horizon Dance, American Recovery and Reinvestment Act of 2009, low-cost loans, stimulus package, Nebraska, Leon Milobar, SBA District Director, “mom and pop” stores, loan application,

Increase Website Traffic — Free Tips and Strategies

How to increase website traffic and explode online business.

more about " Increase Website Traffic — Free Tip…", posted with vodpod

Lincoln entrepreneur reports on national summitt to find solutions for the the millenial generation’s economic challenges

Follow Joy Huber, Lincoln enterepreneur, and her adventures as a state representative to this week’s National Summit in Chicago, Democracy 2.0: Exploring the Millenial Generation’s ROI in Chicago, a gathering of 150 people ages 18 to 34 aimed at enlisting their brain power to find solutions for the economic challenges their generation faces. The gathering is sponsored by the Peter G. Peterson Foundation and Mobilize.org. Omaha.com – The Omaha World-Herald: Money – Democracy 2.0: Nov. 16 report

Technorati Tags: Joy Huber, Lincoln, entrepreneur, national summitt, Democracy 2.0, millenial generation, Peter G. Peterson Foundation, mobilize.org, economic climate, economic future, Facebook, Twitter, David Axelrod, movers & shakers, communication skills, millennial entrepreneurs, small business, Chicago, joyhuber.com,

Microsoft – Funding a Small Business

Jeff Sloan and Rich Sloan give tips on financial options and how to find the right funding for your small business.

[vodpod id=Groupvideo.3929948&w=425&h=350&fv=%26rel%3D0%26border%3D0%26]

more about “Microsoft – Funding a Small Business“, posted with vodpod

Lincoln-based Archrival Studios “rockin”

An interesting article in Sunday’s World-Herald about the Lincoln-based Archrival Studios that has grown into one of the top youth branding agencies in the nation.  After heaps of local, regional and international awards, a small core of dedicated employees and a worldwide client base including companies like Red Bull Energy Drink, Microsoft, Honda, State Farm Insurance and Pabst Brewing Co continue to “play with the big dogs.”  (read more)