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Business

Fewer People Are Starting Their Own Businesses

Fewer People Are Starting Their Own Businesses
Chuck Muth
July 21, 2016

fewer people

(Kerry Close, Time.com) Bad news for aspiring entrepreneurs: Now might not be the best time to launch your own business.

Total entrepreneurial activity in the U.S.—measured by the number of people starting and operating new businesses—fell to 12% in 2015, from 14% in 2014, according to a report released Tuesday by Babson College. The drop reverses upward growth in small business activity during the previous four years.

The findings could indicate that employees are satisfied with their jobsand unwilling to strike out on their own. But the research could also show a lack of confidence in the small business environment in the wake of the recession, Babson professor Donna Kelley told CNBC. The Small Business Optimism Index, a metric from the National Federation of Independent Business, has remained below its 42-year average since the recession.

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