In a jobless economy, more and more people are turning to entrepreneurship.
Scott Gerber, founder of Young Entrepreneur Council, firmly believes that the only way to keep a job is to create a job. And people seem to be agreeing with him.
According to a study by the Kauffman Foundation, Americans are starting businesses at the highest rate in 15 years. In fact, they generated an average of 565,000 new businesses per month in 2010 (via Inc.com).
Despite all of the new companies being created, the economy still doesn’t bode well for hopeful employees. Many entrepreneurs who started businesses last year didn’t hire anyone. The study found a decrease in new business hiring rates, down from .13% in 2007 to .10% in 2010.
“Far too many founders are choosing jobless entrepreneurship, preferring to remain self-employed or to avoid assuming the economic responsibility of hiring employees,” says the Kauffman Foundation. “This trend, if it continues, could have both short- and long-term impacts on economic growth and job creation.”
Other findings from the study:
- Latinos are hopping on the entrepreneurship train. Of all races, Latinos’ entrepreneurial activity increased the most in 2010.
- 35 to 44-year-olds started the most businesses last year.
- More high school dropouts are starting businesses: up from .49% in 2009 to .59% in 2010.
- Most 2010 businesses were created in the construction industry.
For more on this study, head over to Inc.com >>
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