![]() Small businesses by nature start lean, with few or no employees, and in a sluggish economy no business is quick to add to its headcount. Various trends and factors are feeding the decline of job-generating start-ups, and not all of them spell doom-and-gloom, some business experts point out. “This trend, if it continues, could have both short- and long-term impacts on economic growth and job creation,” Schramm said. Bureau of the Census and the Bureau of Labor Statistics. In the U.S., 0.34 percent of American adults created a business per month in 2010 - or 565,000 new businesses - a rate consistent with 2009 and representing the highest level of entrepreneurship over that past 15 years, according to a recent study by the Kauffman Foundation, an entrepreneurship advocacy and research center in Kansas City, Mo.īut at the same time, the quarterly rate for start-ups with employee hires has dropped from 0.13 percent in 2007 to 0.10 percent in 2010, the study concluded.Ĭalifornia was among the top five states for entrepreneurship activity, with 470 per 100,000 adults creating businesses each month in 2010, according to the study, which used monthly population surveys conducted by the U.S. “Far too many founders are choosing jobless entrepreneurship, preferring to remain self-employed or to avoid assuming the economic responsibility of hiring employees.” “Since it began, the recession has triggered annual declines in the rate of employer enterprise births,” said Carl Schramm, president and CEO of the Kauffman Foundation. “There is just so much that can be done by leveraging technology and web-based applications.”īecause small businesses traditionally generate the jobs that help lift economies out of recession, the rise in solo enterprises in the U.S. I don’t even have to have a bookkeeper,” Bixel said. “My tenants pay online, they can request maintenance online, I do all my reporting online. “When I wrote my business plan, I thought there would be a threshhold where we would need to get a facility and more help - but that threshhold is getting higher and higher,” Bixel said. Instead, many new business owners are going it alone as sole proprietors. But unlike earlier periods of economic turmoil, the unemployment that has pressed more people into business ownership isn’t necessarily giving rise to the sorts of start-ups that employ significant numbers of employees. And it’s the kind of rethinking that has some economists fretting.ĭuring the Great Recession, more Americans have become entrepreneurs than at any time in the past 15 years. ![]() He created his own.īixel, founder and president of San Diego’s Integrity Plus Property Management, which also employs his wife, Kim, is thinking about the right time to expand the home-based business and bring on more help. New San Diego Business Licenses New San Diego Business Licensesīob Bixel spent over a year looking for work after the 32-year bank veteran was laid off from his job in June 2009.Īnd when he couldn’t find a job, Bixel, 53, did what a lot of resourceful, middle-management types did.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |