November 2003
Entrepreneurial Enthusiasm is Rising
By
President of Workforce Associates
and author of
NetWork: Maximizing Your Career Resources on the Internet
Available online and in print from Author House
November 2003
Entrepreneurial Enthusiasm is Rising
By
President of Workforce Associates
and author of
NetWork: Maximizing Your Career Resources on the Internet
Available online and in print from Author House
With the American economy slowly recovering, it may seem a bit premature to talk about entrepreneurism and free agency once again. The latest Kauffman Foundation and Babson College annual report is guardedly optimistic about entrepreneurial energy resuming in this country. Here are their key findings:
- The current Economic Slump bottoms out. The 2001 decline in entrepreneurial activity in the United States halted in 2002 at a level that was still 50 percent higher than it was in 1998. After surging in the 1998-2000 period, U.S. entrepreneurial activity fell considerably in 2001. The small shift in the numbers for 2002 was not considered by researchers to be statistically significant. Americans engaged in creating or growing businesses less than 42 months old stood at 10.5 percent of the adult population in 2002, off only slightly from 11.7 percent in 2001, which was down substantially from 16.7 percent in 2000.
- Optimism holds steady. The number of Americans who were optimistic in 2002 about the climate for starting a new business held steady from the previous year. When asked if there will be "good opportunities for starting a business" in the next six months, 37 percent of American adults said yes, which was the same as 2001 levels, but considerably below the 52 percent in 2000. Interest among U.S. adults in starting a new business started surging in 1998 and then peaked in 2000.
- "Informal" capital holds the key. "Informal investment" in the U.S. is holding up better than venture capital. Venture capital funds slumped 59.6 percent in 2001, while "informal investment" declined only 19.5 percent in 2002. Informal investment topped VC investment in the United States in 2002; nearly one in 20 (4.6 percent) adults reported investing money in entrepreneurial firms, with 50 percent of those proceeds going to companies owned by relatives.
- Gender gap persists. Women continue to be less engaged in entrepreneurial activity than men. There are 1.6 men in the U.S. involved in entrepreneurship for every woman engaged in the same activity. In the 18-24 year-old age bracket, men are three times more likely than women to start or grow a new business.
- Strong education-jobs link. The study data show a solid correlation between entrepreneurship, education and job creation. Nearly a third (30 percent) of entrepreneurs with less than a high school education expect to remain self-employed over the next five years, while 35 percent of the most highly educated entrepreneurs expect to employ 20 or more people over the next five years.
So that may be why I’m finding many of my unemployed family and friends are "repackaging" themselves and moving into entrepreneurial ventures out of necessity.
Which qualities compel these people to overcome self-doubt and anxiety and begin new jobs when they have already achieved success before being laid off? In some cases, boredom and anger outweigh the feat. For others, a lifelong history of achievement provides the confidence and drive to take on what others would consider are risky ventures.
How can you take advantage of your own skills and expertise in spotting a niche market to offer new products or services? First of all, start networking with fellow entrepreneurial wannabees. You’ll find them everywhere you live. In metropolitan areas, there are clubs that are called names such as Entrepreneurial Alliance or Venture Club, for example. Another excellent source is the Small Business Administration office that can be found on the campus of most community colleges. Often they have materials and short courses that can be very helpful in creating a business plan and counseling you along the way. Go to their Office of Entrepreneurial Development for a list of excellent publications. You can receive additional help through SCORE, "Counselors to America's Small Business." SCORE is a nonprofit association dedicated to providing entrepreneurs with free, confidential face-to-face and email business counseling. SCORE offers its own valuable email newsletter and advice columns.
Other websites to check out include the following:
Elance offers solid advice re preparing proposals to clients and help in collecting fees after the contract work has been completed.
Freelance Worker Exchange also offers extensive materials, resources, and information about the world of free agency.
AllFreelance offers an amazing variety of services and links if you’re looking for free lancers or if you want to check out the potential competition.
Freelance Writers is a section of CareerBuilder.com that is devoted to mainly free lance writing but there are many other kinds of positions and career advice to check out.
Thanks again for all of your communications this past month. I look forward to hearing about even more entrepreneurial successes in the coming months. Please let me know about websites that are helpful to you.
A very Happy Thanksgiving!
Sincerely,
Jane M. Lommel, Ph.D.
jlommel@WorkforceAssociates.com
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