In a prior post, I called attention to the declining numbers of new business startups over the past three years.
Here’s a chart showing the decline:
(Numbers [x1,000] from the Kauffman Index of Entrepreneurial Activity)
At the time I wrote the article, I assumed the decline was because there were now more jobs and fewer unemployed people. Those who had been contemplating starting a business must have simply gone back to work.
Apparently, that might not be the case…..
A recent article by Ben Casselman, FiveThirtyEight’s chief economics writer, presented the information that a much higher proportion (25%) of the long-term unemployed are simply “giving up” than are finding jobs (11%).
Here is Ben Casselman’s chart:
(Read Ben Casselman’s entire article here.)
I also may have been wrong when I wrote an article awhile back titled The End of the Technology Revolution? In this article I took the position that we were starting into an “Entrepreneurial Revolution.”
According to the two charts above—I was apparently mistaken. People are not turning from employment toward entrepreneurship… they are simply quitting.
And yet… 72% of employees say they don’t want to be an employee—they want to be entirely independent. That sounds like maybe they want to become entrepreneurs.
Or, do they just want to quit working—period?
If the labor force is shrinking, and new business startups are declining—what does the future hold for upcoming generations… other than government subsistence?
Well, I for one believe in the entrepreneurial spirit of Americans. Here’s why:
Courtesy LemonadeDetroit.com – Erik Proulx
What do you think about the people in Detroit who live in what many consider an industrial wasteland; but yet, see immense possibilities for small businesses in the abandoned buildings that formerly housed large corporations?
Do you think that if the people in Detroit can become entrepreneurs, others with fewer obstacles can also become entrepreneurs—instead of quitting altogether?
Moreover, could there even be an Entrepreneurial Revolution all across America in coming years and generations?