U.S. Entrepreneurship | Immigrants were more than twice as likely to start businesses each month in 2011

The Kauffman Index of Entrepreneurial Activity is a leading indicator of new business creation in the United States and is presented a very comprehensive report. (Adapted Report excerpts by Job Market Monitor following)

The Kauffman Index reveals important shifts in the national level of entrepreneurial activity and shifts in the demographic and geographic composition of new entrepreneurs across the country.

Key findings for 2011 include:

The rate of business creation declined from 340 out of 100,000 adults in 2010 to 320 out of 100,000 adults in 2011, which represents a drop of 5.9 percent. This 0.32 business-creation rate translates into approximately 543,000 new businesses being created each month during the year.

Although the entrepreneurship rate declined in 2011, it remained more than 5 percent higher than before the recession started. Over the past decade and a half, the business creation rate fluctuated within the range of 0.27 percent to 0.31 percent, but then rose above this level in the past four years. A separate measure also
calculated in the report shows that, from 2007 to 2010, the quarterly employer establishment birth rate dropped from 0.13 percent to 0.11 percent. These opposing trends may be due to the Great Recession pushing many individuals into business ownership because of high rates of unemployment. These individuals probably
were more likely to start sole proprietorships and other non-employer firms instead of more costly employer firms Both men and women experienced slightly declining rates of entrepreneurial activity in 2011.

The entrepreneurial activity rate among Latinos decreased from 0.56 percent in 2010
to 0.52 percent in 2011, but remained at a high level relative to previous years and  other demographic groups. The Asian entrepreneurial activity rate also decreased in 2011 (from 0.37 percent to 0.32 percent).

Immigrants were more than twice as likely as were the native-born to start businesses
each month in 2011. The immigrant rate of entrepreneurial activity decreased from 0.62 percent in 2010 to 0.55 percent in 2011. The native-born rate declined from 0.28 percent in 2010 to 0.27 percent in 2011.

The aged 20–34 and aged 45–54 groups experienced increases in entrepreneurial activity from 2010 to 2011, whereas the aged 35–44 and aged 55–64 groups experienced decreases in rates.

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Read More @ Kaufman Index Of Entrepreneurial Activity 1996-2011