An Entrepreneurial Silver LiningWhile reports on our current recession are inescapable, there is one positive piece of news -- rates of entrepreneurship increase during times of recession. Admittedly, a number of new firms can be attributed to necessity entrepreneurs -- those who start a firm because they have lost a job or have greatly reduced employment opportunities. But it is also true that these firms combine with new high-growth firms to drive economic growth -- even in times of recession. This week, I highlight a new study from the Kauffman Foundation that explores this.
Here is the lead:
A new study has confirmed it. A close look at our entrepreneurial history reveals that entrepreneurship is an engine for job creation and economic growth even during difficult economic times. This new study by the Kauffman Foundation suggests that policies that support entrepreneurship also support recovery. It also reveals that job creation from startup companies tends to be less volatile and sensitive to downturns when compared to the overall economy.
Now read the rest.