Get All Access for $5/mo

For the First Time Since the Great Recession, U.S. Startup Activity Is Strengthening A new report from the Kauffman Foundation shows a rebound in entrepreneurship.

By Catherine Clifford

Opinions expressed by Entrepreneur contributors are their own.

Veri Ivanova | StockSnap.io

For the first time since the Great Recession decimated the U.S. economy, entrepreneurship is making a comeback.

The rise of U.S. startup activity reverses a five-year general decline, according to the latest report by the Kauffman Foundation, a non-profit entrepreneurship organization. The 2015 Startup Activity report measures data through the end of 2014.

"This rebound in entrepreneurial activity lines up with the strength we've seen in other economic indicators, and should generate hope for further economic expansion," said Dane Stangler, vice president of research and policy at the Kauffman Foundation, in a statement.

For every 100,000 adults, there were about 310 new entrepreneurs each month, compared with an average of 280 in 2014, according to the report. The jump marked the largest year-over-year increase in two decades.

Related: Jolt Yourself Out of Your Routine. That Billion-Dollar Business Idea Could Be Waiting.

The rate of new entrepreneurship in the U.S. is only one of the components which the Kauffman Foundation uses to generate its annual Startup Activity Index. Another measure included is the percentage of new entrepreneurs who are starting their own businesses because they see opportunity, not because they are out of work and unable to get a job.

These so-called "opportunity entrepreneurs" represented 79.6 percent of total new entrepreneurs, according to the latest report. That's a small increase over last year and a healthy jump over the percentage of opportunity entrepreneurs in the years following the Great Recession.

"Entrepreneurs starting new businesses because they saw market opportunities is back to historical norms," said Arnobio Morelix, one of the study's authors and a research analyst at the Kauffman Foundation, in a statement.

Though the most recent snapshot of the startup ecosystem in the U.S. is encouraging, U.S. entrepreneurship is not yet back to pre-recession levels. "It's important to view this short-term uptick in context of the bigger picture – we are still in a long-term decline of activity, which affects job creation, innovation and economic growth," says Stangler.

Related: Battle-Tested Startup Advice From 6 Awesome Entrepreneurs

Click to Enlarge
For the First Time Since the Great Recession, U.S. Startup Activity Is Strengthening
Image credit: Kauffman

Related: What Inspires Entrepreneurs to Work as Hard as They Do

Catherine Clifford

Senior Entrepreneurship Writer at CNBC

Catherine Clifford is senior entrepreneurship writer at CNBC. She was formerly a senior writer at Entrepreneur.com, the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Clifford attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. You can follow her on Twitter at @CatClifford.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Side Hustle

She Grew Her Side Hustle Sales From $0 to Over $6 Million in Just 6 Months — and an 'Old-School' Mindset Helped Her Do It

Cynthia Sakai, designer and founder of the luxury personal care company evolvetogether, felt compelled to help people during the pandemic.

Franchise

Make a Real Difference in Your Community with a Huntington Franchise

For nearly 50 years, Huntington Learning Center's mission-driven approach has positively impacted over one million students. Huntington's commitment is to its students and to the families they serve enables them to make a meaningful difference across the country.

Business News

Paramount+ to Increase Prices Again In Cost-Cutting Iniative After Failed Merger

This is the second summer in a row that the streaming service will hike monthly prices for subscribers.

Business News

A Microsoft-Partnered AI Startup Is Being Sued By the Biggest Record Labels in the World

The company is allegedly profiting from AI without compensating the human work that fed the technology, the lawsuit says.

Business Ideas

Free Webinar | July 18: How to Design, Manufacture and Sell Your Product Idea

Join us for our webinar with Jordan Nathan, founder of the kitchenware brand Caraway. Jordan will share the strategies he used to develop, manufacture and sell his products that grew Caraway's annual revenue by over 500% in just 4 years. Register now!

Growing a Business

How Businesses Can Thrive Without a Physical Office in Today's World

The benefits of transitioning to a fully remote work model