Join our Waitlist for Expert Advice!

Entrepreneurship Is on the Rise

By Mikal E. Belicove

Opinions expressed by Entrepreneur contributors are their own.

According to the latest figures from the KauffmanFoundation, for each month in 2009, 340 out of 100,000 U.S. adults started anew business. That statistic, the highest in the last 14 years, represents a 4percent increase over 2008, or 27,000 more starts per month than in 2008, and60,000 more starts per month than in 2007. What that means is that in 2009,558,000 new businesses were created each month, signaling perhaps that thenation's entrepreneurs are unabashedly paving the road out of the U.S.recession.

Kauffman's findings, which are detailed in the KauffmanIndex of Entrepreneurial Activity: 1996 - 2009, reveal that entrepreneurshiprates by race show that African-Americans experienced the largest increase innew business activity between 2008 and 2009. Rising from 0.22 percent in 2008to 0.27 percent in 2009, the rate was the highest over the 14 years of reporteddata.

Other key findings include:

  • Entrepreneurship growth was highest among 35- to 44-year-olds, rising from 0.35 in 2008 to 0.40 in 2009.
  • The oldest age group in the study (55-64 years) also experienced a large increase in business-creation rates from 2008 to 2009, contributing to a two-year upward trend to 0.40.
  • Among states, Oklahoma and Montana had the highest entrepreneurial activity rates, with 470 per 100,000 adults creating businesses each month. The other states with the highest rates were Arizona (460 per 100,000 adults), and Texas and Idaho, both with 450 businesses started per 100,000 adults.
  • The five states with the lowest rates of entrepreneurial activity were Mississippi (170 per 100,000 adults), Nebraska (200 per 100,000 adults), Pennsylvania (200 per 100,000 adults) Alabama (210 per 100,000 adults) and Minnesota (220 per 100,000 adults).
  • Among the United States' fifteen largest metropolitan statistical areas, Houston had the highest entrepreneurial rate (0.63 percent) in 2009. Seattle had the lowest rate (0.16 percent).

To learn more about Kauffman's findings, read Kauffman Index of Entrepreneurial Activity: 1996 - 2009.

Mikal E. Belicove is a market positioning, social media, and management consultant specializing in website usability and business blogging. His latest book, The Complete Idiot’s Guide to Facebook, is now available at bookstores. 

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

Business News

You Have One Month Left to Buy a House, According to Barbara Corcoran. Here's Why.

"If you are planning on waiting a year and seeing where interest rates go, you are out of your mind," Corcoran said.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Franchise

The McRib Is Back, But Only at Select McDonald's — Here's Where to Find It

This scarcity is nothing new. In 2022, McDonald's announced a "Farewell Tour" for the McRib, suggesting that it might be the last time customers could get their hands on it.

Business Solutions

Cut Costs, Not Features with This Microsoft Bundle Deal

You get Office, Windows, Project, and Visio for $72.

Side Hustle

I Made $14,000 in 1 Week With a Spontaneous Halloween Costume Side Hustle — Here's How

Sabba Keynejad was in art school when he started to refine his entrepreneurial skills.