Entrepreneurial Activity Is On Fire
Don’t be surprised if your small business is feeling the heat of new competition.
A national assessment of entrepreneurial activity launched by the Ewing Marion Kauffman Foundation of Kansas City has found that more than half a million new businesses are started each month. The Kauffman Index of Entrepreneurial Activity is the first study to measure business startup activity for the entire U.S. adult population at the individual owner level.
The study offered interesting insight into the nature of the entrepreneurial startups:
The Latino rate of entrepreneurship increased from 0.38 percent in 1996 to 0.48 percent in 2004, which was higher than the white, non-Latino rate of 0.39 percent.
Immigrants have substantially higher rates of entrepreneurship than native-born individuals. The average rate of entrepreneurship for immigrants was 0.46 percent compared to 0.35 percent for the native-born.
Entrepreneurship activity is substantially higher among men than among women. From 1996 to 2004, the average rate of entrepreneurship for men was 0.46 percent and the average rate for women was only 0.28 percent.
Entrepreneurship activity is much lower for African-Americans than other ethnic/racial groups; however, rates appear to be increasing. The average rate of entrepreneurship for blacks was 0.29 percent in 1996 and 0.35 percent in 2004.
What You Can Do
If you just launched your own business, check out these five resources. All of them can help you pave the road to success.
1. The National Association for the Self-Employed (NASE)
For almost 25 years, the NASE (www.NASE.org) has offered money-saving benefits and micro-business resources for the self-employed. Joining the association gives you access to:
A variety of vendors that offer things you and your new business will need, such as accounting software, office supplies, legal help, business credit cards, retirements plans and more
Small-business consultants and CPAs who can answer your questions about taxes, financing, marketing and more – at no additional cost
2. EntrepreneurialConnection.com
This Web site is powered by the NASE. It features in-depth articles posted monthly, links to government and private resources, and a bimonthly e-newsletter – all geared to small-business owners. The content is free.
3. Small Business Development Center (SBDC)
SBDCs offer workshops, seminars, conferences and courses at nearly 1,000 locations across the nation. To find an SBDC near you, go to www.sba.gov/sbdc.
4. SCORE
This national organization gives you free and confidential small-business advice, delivered by men and women who have experience in running successful businesses. Get help online at www.score.org. Or call (800) 634-0245.
5. U.S. Small Business Administration (SBA)
The granddaddy of small-business information. Spend a few hours (or a few days) studying the Web site at www.sba.gov. You’ll find information, Web links, articles and hundreds of other resources about starting a small business.
