Startups say Hello America!

Startup activity sees biggest rise in 2015 compared to the past two decades
Even though American politicians like to praise small business as the job-creating machine, research shows that it’s the startups that expand employment.These new entrepreneurs are now back on the rise, according to a report by Kauffman Foundation, which studies entrepreneurial activity.

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.

Source: The Economic Times
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Author:

Neeraj; an entrepreneur & a visionary in the field of Railway, Defense & Automobiles, is a graduate in commerce and a Harvard Business School Alumni. He’s an expert in govt. liasoning & contracting and has an exceptional network & connections at both local as well as global level. He’s an expert in Market Strategy & Planning and has served number of overseas companies as an advisor/consultant. He takes a profound interest in upcoming startups & is very receptive towards ground-breaking ideas & innovations. He likes to brainstorm those ideas and if the values & philosophies matches; he is even ready to invest his resources, serve as a mentor or act as an incubator to futuristic businesses.

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