Index of Entrepreneurial Activity Rises in 2007
Latinos experienced a large increase in the entrepreneurial activity rate in 2007. The entrepreneurial activity rate increased from 0.33% in 2006 to 0.40% in 2007. Non-Latino whites and African-Americans experienced slight increases in entrepreneurial activity rates, and Asians experienced a decline in rates (see top chart above).
A related finding is that the rate of entrepreneurial activity among immigrants, already high relative to the native-born, increased substantially between 2006 and 2007. From 2006 to 2007, the entrepreneurial activity rate among immigrants increased from 0.37% to 0.46%, considerably higher than the native-born entrepreneurial activity rate of 0.27% (see bottom chart above).
From the Kauffman Index of Entrepreneurial Activity, the only annual study to measure business startup activity for the entire United States adult population at the individual owner level. In 2007, 495,000 new businesses per month were started, with 0.30% of the adult population (or 300 out of 100,000 adults) involved in the startup process. This entrepreneurial activity rate is a slight increase over the 2006 rate of 0.29%.
"At a time when the nation is concerned about the economy, it is heartening to see that entrepreneurial activity continues to rise," said Carl Schramm, president and chief executive officer of the Ewing Marion Kauffman Foundation. "The entrepreneurial sector is a critical factor in our nation's economic growth. Even during times of recession, new firms have been responsible for the bulk of new jobs and innovations in America. That is why it is vital to track startup trends like we track other economic indicators."