New U.S. Entrepreneurship Monitor Report

Rates of entrepreneurship are rising in the US, but they’re not necessarily contributing to robust job growth. That’s the primary message from the latest report from the Global Entrepreneurship Monitor (GEM) project, a research program of Babson College and the Kauffman Foundation (NDE’s sponsor).

The report notes that entrepreneurial activity in the US is bouncing back after two years of slowdown. Surveys show that 11.9% of the US adult population is involved in entrepreneurial activity. Yet the GEM researchers caution that many of these start-ups simply reflect self-employment; these new businesses are unlikely to be major generators of new jobs and innovation. Overall, more than 40% of new business owners are self-employed and do not plan to hire others.

Among other findings in the report are that the US continues to lead the world in the quality and breadth of entrepreneurship education offerings. At the same time, the GEM researchers argue that all levels of government need to do a better job of creating a regulatory and policy framework that supports entrepreneurship.

To access the United States Global Entrepreneurship Monitor 2003 Report, by Maria Minitti and William D. Bygrave visit http://www.kauffman.org or http://www.gemconsortium.org/document.asp?id=355