Filed under: Small business
No doubt, small businesses are a powerful force in the U.S. economy in terms of job creation and innovation. And, according to a current study from the Kauffman Foundation, it looks like things are still going strong, despite the slowing economy. For example, each month, about 500,000 new businesses are started (of course, there are certainly a good number that fail as well).
So, what are some of the key trends? Well, interestingly enough, there’s quite a bit of growth from immigrants. In fact, they are more apt to start businesses than native-born Americans.
Something else: men are twice as apt to start a business then women. Actually, I think this is unfortunate because diversity certainly grants for stronger growth.
However, looking at the next decade or so, I suspect we’ll see much more entrepreneurial activity. Why? It’s when the Baby Boomers will reach their prime years for new business formation. They will have the wisdom and resources to take a flier. What’s more, a new business might actually became an interesting way for Baby Boomers to essentially change the definition of “retirement” — that is, leaving the rat race and doing what they really want.
Tom Taulli is the author of various books, including The Complete M&A Handbook (www.mergerbook.com) and is also a principal in Averiware, which provides an ERP system to small and mid-size businesses.
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