Can’t find a job? Create one

March 9, 2011

young entrepreneurWhat happens when the economy takes a turn downward and people lose their jobs? Many of them create their own jobs.

A report from the Kauffman Foundation released earlier this week shows that more Americans started businesses in 2010 and 2009 than they have for the past 15 years, reports. Last year, 340 of every 100,000 adults launched a business each month, creating 565,000 startups monthly.

Kauffman says high unemployment is creating the trend, the website reports. However,

More start-ups, however, don’t necessarily mean more job opportunities.

“Individuals are starting businesses partly out of desperation,” said Robert W. Fairlie, author of the report and professor of economics at the University of California, Santa Cruz. “And if you are going to start a business in those conditions, then it is probably not the best idea to start one hiring employees.”

The study also shows that the number of newly created businesses with employees is down, meaning that people are staying self-employed, and not hiring others. It also shows that immigrants are more likely to start a new business than a native-born American.

What do you think about this report? Are you an entrepreneur out of necessity? Tell us about your experience in the comments below.

This post is brought to you by the good folks at Dale Carnegie Training of Central Indiana, providers of professional development and management development courses and information in Indiana. We would love to connect with you on Facebook.

Image courtesy of rachaelvoorhees via Flickr
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