Entrepreneurs seen as economic solution

[TOM Merilahti]

Philanthtopy Journal
October 21, 2008

While Americans believe entrepreneurism is the engine that will drive the U.S. out of its current economic slump, few are willing to start businesses themselves, a new study says.

More than seven in 10 voters says the health of economy rests on entrepreneurism, says a new survey released by the Ewing Marion Kauffman Foundation.

And yet, while almost half the respondents see opportunities for new business currently, only about one in four say they would consider starting a new business within the next five years.

That may be because the financial crisis is starting to hit home for many Americans.

Fewer than one in 10 people believe they are not personally at risk because of the economy, the study says, and one in three say their homes, jobs and investment all are vulnerable.

One in four people expect the financial meltdown to have a "very bad" or "devastating" impact on them personally, while an additional one in three say the impact will be "pretty bad."

Fewer than two in 10 people believe the government is up to the task of alleviating the crisis, while more than half say small-business owners are equipped to guide the economy.

"History has repeatedly demonstrated that new companies and entrepreneurship are the way to bolster a flagging economy," says Carl Schramm, president and CEO of the Kauffman Foundation.

Professional Area: Management/leadership
Field of Interest: Economic development

[Mona Youssef]

Hello Tom,

Thank you for the statistics regarding the present situation for the economic crises.

I do agree with Mr. Carl Schramm that new companies and entrepreneurship can switch the facts to happy results for all and they are definitely the way to Schramm a flagging economy. We may wonder why! The fact is that Entrepreneurs / small business are always careful in planning their strategies by having alternatives. They are humble enough to acknowledge their limitations and well aware that they are not in the position to afford failing business.

I wonder if we should call this "small business", "wise business" or "clever business"!