Startup Activity Declined in US in 2011, Age group 45-50 showed the highest growth! [Kaufmann Report]

As per Kauffman report, there was a slight decline in entrepreneurship in US, as the Index shows that 0.32 percent of American adults created a business per month in 2011 – a 5.9 percent drop from 2010, but still among the highest levels of entrepreneurship over the past 16 years. The quarterly employer firm rate also remained essentially flat from 2010 to 2011 at 0.11 percent.

Kaufmann Report

Kaufmann Report

What’s interesting is that entrepreneurship growth was highest among 45- to 54-year-olds, rising from 0.35 percent in 2010 to 0.37 percent in 2011. The youngest group (aged 20 to 34) also showed a slight increase. In contrast, the 35- to 44-year-old and 55- to 64-year-old groups experienced declines in entrepreneurial activity rates from 2010 to 2011!

Other key findings for 2011 include:

  • Both immigrant and native-born entrepreneurial activity declined slightly in 2011; however, immigrants remained more than twice as likely to start new businesses as were the native-born.
  • Entrepreneurial activity decreased slightly for both men and women. For men, the entrepreneurial activity rate decreased from 0.44 percent in 2010 to 0.42 percent in 2011, reversing an upward trend over the past few years. The female entrepreneurship rate decreased from 0.24 percent to 0.23 percent.
  • The Latino share of all new entrepreneurs rose from a little more than 10 percent in 1996 to 22.9 percent in 2011, reflecting longer-term trends of rising entrepreneurship rates and a growing share of the U.S. population. The Asian share of new entrepreneurs also rose substantially from 1996 to 2011, but remains relatively small at 5.3 percent. The white share of new entrepreneurs declined during this time period, while the African American share increased slightly.
  • The entrepreneurship activity rate among the least-educated group (high school dropouts) decreased from 0.59 percent in 2010 to 0.57 percent in 2011 but remains significantly higher than for groups with other educational levels. The largest decrease in entrepreneurial activity occurred for college graduates. [link]