Economic Confidence Dips Among Entrepreneurs
The latest Kauffman/LegalZoom Startup Confidence Index points to a continuing decline in expectations for the U.S. economy. Almost 40 percent of startup owners believe the economy will deteriorate over the next 12 months, an increase from 36 percent in the second-quarter survey and 31 percent in the first-quarter. Not surprisingly, the number of entrepreneurs who were “somewhat confident” in future profitability dipped as well.
However, not all the news is bad—at least if your age is somewhere between 18 and 40.
LegalZoom co-founder Brian Liu wrote about those ‘young, starry-eyed entrepreneurs’ in The Huffington Post.
“It appears that fears of European contagion, the fiscal cliff, taxes and the Facebook IPO fiasco have eroded confidence in the general economy. Looking comparatively at previous quarters, most age groups believe that the general economic health is declining.
18- to 30-year-olds, on the other hand, see the world in a different light. Instead of believing that the economy will deteriorate, they believe that consumer demand will increase.”
98 percent of 18-30 year olds and 83 percent of those aged 31-40 are confident or very confident that their businesses will realize greater profitability in the next 12 months.
The Kauffman/LegalZoom Startup Confidence Index