The Kauffman Index of Startup Activity , which is an indicator of new business creation, had the biggest increase in 2015 over the past two decades, reflecting an in crease in the share of new firms as well as more serious intentions behind the projects.
People in the recession began enterprises often because they lost a job and, for example, would start a consulting gig to put something on a resume while search ing for real employment.
Kansas City-based Kauffman tracks why people start business es, and in 2014, about 80% were driven by opportunities as op posed to necessity. That’s back to about the level seen in the decade prior to the recession. “There is a broader return to normalcy in the economy,“ said EJ Reedy, director of research and policy at Kauffman. “People are following opportunities more. They are slightly less risk averse. During the height of the last recession, the run-up was more in people forced into entrepreneurship.“
The risk-taking has been driven by greater confidence in the economy and job market, which Reedy points out, is also reflected in gauges such as the percentage of people who voluntarily leave their jobs. Labour Department figures show that it is gradually risen since 2009 to near pre-recession levels.
Moreover, household wealth rose to a record $82.9 trillion in the fourth quarter as stock prices rose and housing values recovered. Because most entrepreneurs use their own resources to finance startups, those gains have helped. The 52-page Kauffman report documented some other notable trends among entrepreneurs.