In The Wall Street Journal: Percentage of New Businesses Begun by Women Fell in 2014

The Wall Street Journal reports on Kauffman Foundation data showing that the share of new businesses started by women in 2014 decreased to its second-lowest level in nearly twenty years. The data stem from the upcoming Kauffman Index: Startup Activity.

In 2014, women opened 36.8 percent of new U.S. businesses (down from an average of 40.7 percent over the last nineteen years—and close to the low point of 36.7 percent from 2007) while the number of new U.S. businesses that men opened in 2014 shot up by 21 percent from the previous year.

In a preview of the Kauffman Index from The Wall Street Journal, Kauffman Foundation Director of Research & Policy E.J. Reedy explains that, historically, men are more likely than women to start a business to earn a living after they’ve been fired or laid off.

Learn more about the upcoming Kauffman Index on the Foundation’s “Growthology” blog and read an excerpt of The Wall Street Journal article below.

Women Started Smaller Percentage of U.S. Businesses in 2014

The latest numbers likely reflect both broad macroeconomic factors, such as the construction rebound, and the obstacles facing women entrepreneurs, analysts say.

In all, men started an average of roughly 337,000 U.S. businesses a month last year, up 21% from 2013, according to an annual index of startup activity that will be released later this month by the Ewing Marion Kauffman Foundation, a Kansas City, Mo., nonprofit.

Women, by contrast, launched an average of just 196,000 businesses a month in 2014, about the same as in 2013.

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