June 23, 2009 by Joshua Wright
The Kauffman Foundation has released two reports that reinforce the value of entrepreneurs, particularly in hard economic times. The first, entitled “The Economic Future Just Happened,” goes in depth on the relationship between recessions and entrepreneurial activity.
The study found that more than half of the companies on the 2009 Fortune 500 list were launched during a recession or bear market, along with nearly half of the firms on the 2008 Inc. list of America’s fastest-growing companies. The report also suggests a broader economic trend, with job creation from startup companies proving to be less volatile and sensitive to downturns when compared to the overall economy.
Another Kauffman study, “The Entrepreneurial Boom,” focuses on how baby boomers have been and are projected to be the chief catalyst for new economic activity. Fewer boomers are staying in lifetime jobs, and many are exploring new business possibilities in light of the current recession.