The economy has inhibited many potential growth strategies and opportunities for hiring by small-business owners, but recent statistics compiled by Babson College and Baruch College demonstrates that the entrepreneurial spirit has been reborn throughout the United States.
Small businesses are expected to be the lifeblood of the economy, as their firms are the ones that can create jobs and inject cash flow into the struggling nation. The survey found more than 29 million U.S. adults (18-64 years old) were running or starting new businesses in 2011, and 40 percent of these entrepreneurs expected to create more than five new jobs in the next five years.
Entrepreneurship rate growing in the US
More than 12 percent of Americans are involved in entrepreneurial activity, which represents at least a 60 percent increase of new firm owners since 2005. This growth rate demonstrates that Americans are no longer scared to venture into business ownership despite the status of the economy.
“Most of these entrepreneurs were in the process of just getting started, which means a lot of people took the leap into entrepreneurship during 2011,” said Donna Kelley, leader of the study. “In addition, compared with 2010, more people reported that they were intending to start businesses in the next three years, showing a more positive future outlook for entrepreneurship in the United States after two years of declining indicators.”
While the entrepreneurial spirit is strong, these aspiring firm owners need to proceed with caution and take the necessary precautions to protect themselves and their enterprise. With small business insurance policies, entrepreneurs will feel more secure with their new ventures.
Optimism drives entrepreneurship
Both men and women are beginning to realize that entrepreneurship could lead them down the path toward owning a prosperous business. Americans were not starting business because they were out of jobs, it was because men and women believed owning a firm was the right opportunity for them.
“In the depths of the recession, we saw a tremendous increase in people starting businesses out of necessity,” said Kelley. “In 2011, the entrepreneurship rate was pulled up primarily by those starting businesses to pursue promising opportunities – a strong sign of entrepreneurial activity occurring as a result of optimism, not desperation.”
