The Kauffman Foundation has issued the 2021 edition of its “National Report on Early Stage Entrepreneurship in the United States.”
The study tracks four indicators of early stage entrepreneurship: (1) rate of new entrepreneurs which reflects the number of new entrepreneurs in a given month; (2) opportunity share of new entrepreneurs which is the percentage of new entrepreneurs who created their businesses out of opportunity instead of necessity; (3) start-up early job creation which is the total number of jobs created by start-ups per capita; and (4) start-up early survival rate is the one-year average survival rate for new firms.
A key takeaway is that the rate of new entrepreneurs was lower in 2021 than 2020 but higher than in pre-pandemic 2019, reflecting more transitions into entrepreneurial activity, broadly defined, among the population during pandemic conditions. At the same time, the opportunity share of this activity increased from 2000, when it was at its lowest level in the last 25 years, indicating that many of these transitions were undertaken by people with few other options for economic engagement.
Click here to access the report.