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Study reveals highest levels of entrepreneurship and business creation in U.S. history


Sep 14, 2023

According to a new report from Babson College’s Global Entrepreneurship Monitor, Americans are starting and running their own businesses at a record rate. This marks the highest level of entrepreneurship since the survey began in 1999. The report suggests that this trend could continue post-pandemic, with more women and people of color leading their own businesses.

The surge in entrepreneurship began early in the pandemic when sudden job losses led many individuals to venture out on their own. Government funding, including stimulus checks, unemployment benefits, and small business loans, has provided a financial cushion for many aspiring entrepreneurs. As a result, the number of business registrations has remained high, indicating a strong economic recovery.

However, experts warn that small and medium-sized businesses founded in recent years face new challenges. Economic uncertainty, high costs, and slowing consumer spending may pose obstacles to their growth. The business exit rate has also increased, indicating that it may be difficult for businesses to sustain growth over time.

Entrepreneurship has become an appealing alternative to traditional employment, particularly for ethnic minorities. The report shows that black adults and Hispanic adults have the highest rates of starting a business, compared to white adults. Marginalized groups, such as formerly incarcerated individuals and those with criminal records, are also more likely to start their own businesses.

Women continue to be a driving force in American entrepreneurship post-pandemic. Many women, like LaTavia Thomas, have left traditional employment to pursue their own businesses. Thomas started a makeup and microblading business, and she hopes to open her own studio specializing in services for Black and brown people in the entertainment industry.

The report also highlights a shift from service industries to manufacturing and logistics. Many businesses in the D.C. area have closed during the pandemic, while others, like Joseph Smith, have found success selling homemade products online. Smith started selling handmade soaps and has seen an increase in sales. He now sells most of his products to local farmers and plans to open a mobile bakery.

Overall, the increase in entrepreneurship among Americans holds promise for innovation, job creation, and contributing to America’s competitiveness. However, further considerations such as training, access to finance, and addressing the challenges faced by startups are necessary to support their growth and success.

By Editor

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