Study Uncovers Changing Trends in Entrepreneurship
Nov 30th, 2009 | By Dawn Rivers Baker | Category: ResearchIf you were to step outside and walk down the street right now, one of every eleven or twelve people you passed would be involved in some stage of starting or managing an entrepreneurial venture, according to a newly released report from the Global Entrepreneurship Monitor (GEM). One of the more noticeable things about this report is the prevalence of opportunity entrepreneurs over necessity entrepreneurs — in spite of a rash of stories in the business media over the last year about “forced entrepreneurs.” Distressed economy notwithstanding, total entrepreneurial activity (TEA) in the U.S. increased slightly, from 8.3% in 2007 to 8.7% in 2008.
While the TEA increased in 2008, signs of the recession made themselves felt. For example, nascent entrepreneurs were significantly less optimistic in 2008 than in previous years. When asked if they expect to start their firms within the next three years, the number of ‘yes’ responses from those nascent entrepreneurs peaked at 65% in 2005 and has slid since then to the 2008 reading of just over 50%. Some economy watchers might also be distressed by the finding that entrepreneurs expect their firms to be smaller than was once the case in all size classes, except an increase in the number expecting to have more than 20 employees. Researchers also found many more new firms qualifying as “high-tech” — meaning they used computers and/or were Internet-based businesses — than in previous surveys.
This is astonishing facts to know that many people are getting interested to run their own business. I think it helps a country’s economy a lot.