Some 10 million American adults are involved in the process of starting nearly six million potential new businesses at any given time, with minorities 50 percent more likely to start a business than whites, according to a national study of entrepreneurship funded in part by the Ewing Marion Kauffman Foundation. The Panel Study of Entrepreneurial Dynamics is the first research effort to offer systematic and reliable data on the process of business formation. The national, multi-year study tracks a group of emerging entrepreneurs as they progress through the entrepreneurial process, revealing that new business formation is as widespread as getting married or the birth of a baby and involves all racial and ethnic groups.
The study seeks to answer four questions:
Among the key findings:
- Approximately 10.1 million adults in the U.S. are attempting to create a new business at any given time. With nearly one half of all new ventures started by teams of people, this represents about 5.6 million potential new businesses.
- Blacks are 50 percent more likely to engage in start-up activities than whites. Hispanic men are slightly more likely than white men to be involved with start-up.
- Education significantly predicts nascent entrepreneurship, particularly for blacks and Hispanics. Approximately 26 of every 100 black men and 20 of every 100 Hispanic men with graduate education experience report efforts to start a new business. This compares to 10 of every 100 white men with graduate education experience.