The Kauffman Foundation has just released its latest Index of Entrepreneurial Activity. The index is the result of an annual study that looks at new business creation across the United States. Data is taken from the Current Population Survey (CPS) which allows for comparisons of the percentage of the adult, non-business-owner population that starts a business over time. In addition to this overall rate of entrepreneurial activity, separate estimates for specific demographic groups, states and metropolitan statistical areas (MSAs) are also presented. This Index provides the only national measure of business creation by specific demographic groups. The entrepreneurial activity rate has remained fairly consistent over the past decade, but this year results reveal some important shifts in the demographic and geographic composition of new entrepreneurs across the country. Key findings include:
- Men are now twice as more likely to start up a new business than women. The entrepreneurial activity rate for men has increased from 0.35% in 2006 to 0.41% in 2007. In contrast, activity rates for women have fallen from 0.23% to 20%.
- The construction industry has the highest entrepreneurial activity rate in 2007, followed by the services industry.
- Non-Latino white and African-American business creation rates increased slightly from the previous year whilst Asian entrepreneurship rates declined.
- The immigrant entrepreneurial activity rate has increased from 0.37% in 2006 to 0.46% in 2007.
The report is available in full from the Kauffman Foundation website (PDF)