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Home News

New business creation: increase or decrease?

by Gentle Jarret
November 18, 2020
in News
0

The question was recently submitted to me, “Are there more businesses formed today than in the past, or less?” The answer varies and depends on who you ask, and just as important, the geographical area what you mean. Local images here in Orange County, California may differ from the national picture, and we also have to look from where the data came from. Does it submit a new DBA form (US business) is “a new business?” In many cases the answer is “no” because it can be a new name (or additional) of the existing business. Apart from all that, let’s look at the overall picture, will we?

One report from a company that sells the “start kit” report, “increased 30% since the recession began in 2010. It shows that people want to have independence and in many cases create their own work by starting a new business. This new business tends to startup like a startup We taught our course … “Is this report / review bias? Without doubt. They use their sloping and their products disguised as a press release to declare the appearance of tired hard data. There is nothing wrong with that, the company does it all the time and it is a very useful way to utilize PR and media exposure.

Kaufmann Foundation, one of the largest and most honorable non-profit organizations that do many things – including reporting new business making – very specifically by stating that the creation of new businesses is higher in the west and southwest, as much as 12% higher than the rest of the nation. Other major statistics:

“Companies owned by younger companies grow faster, on average, than those owned by older companies. However, many young companies are closed as soon as they open, so the level of work destruction is also higher for companies owned by Young company. Therefore a young pattern. Therefore business is one of the “up or out,” with rapid net growth for victims balanced with high out levels. “Attractive statistics and one that I personally found when examining books.

One of the very sad fact that is more true than not, is that California as a country has changed from one of the leaders in the creation of entrepreneurship, down – to date. Using the Labor Statistics Bureau data, which is very focused and accurate, California between 2009 and 2010 switched from the first to the worst among countries to open new business companies. In 2009, California had 12,529 new business companies and in 2010, lost 4,632 companies. Only Michigan was worse, lost 5,480.

How sad is that?

But the good news is that everything increased significantly in 2011 in the recent Kaufmann report and California had returned to second place, with only Arizona in front.

“Large recession has encouraged many individuals into business ownership because of the high unemployment rate,” said Robert Litan, vice president of research and policy at the Foundation Kauffman. He added that economic uncertainty has made this early entrepreneur more careful so they started the company without employees. “The trend of ‘unemployed entrepreneurship’ is negatively affected the creation of employment and greater economic recovery.”

So the question is appointed, “Is the entrepreneur born or they made?” Traditionally they are more genetically pushed than “need” driven, but this never ending recession (damned statistics, we still have it) “force” a lot to go to the entrepreneurial route.

As a very unemployed entrepreneur, I praise all who took it, well with genetic tendencies or needs. The only warning: look for knowledge first, find mentors, and collaborate with anyone who can support your business.

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