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Kauffman Trends in Entrepreneurship: Are We Back? Early Stage Entrepreneurship Trends Two Years Into the COVID Pandemic

The landscape of entrepreneurship has changed dramatically since the emergence of COVID-19. In this brief, we highlight some of these changes based on findings from the Kauffman Early-Stage Entrepreneurship Indicators – a set of measures that track new business creation in the United States going back more than 25 years. We also examine how trends during COVID-19 compare to trends during the Great Recession.

The cover of a Kauffman Indicators report titled, "Job Creation by Firm Age: Recent Trends in the United States"

Entrepreneurship is often heralded as a driver of job creation. Research finds that young firms are responsible for most net new jobs. There is wide variation, however, in the number of jobs that young firms generate. While some new firms never hire employees and others are responsible for only modest job creation, a small share of new firms experiences extraordinarily high growth and creates a significant number of jobs.

Message from the CEO: The time for hope and fundamental action has arrived.

Kauffman President and CEO Wendy Guillies writes that we have a rare opportunity to address the widening wealth and income gap by strategically deploying historic federal funding – and encourages us to not miss this once-in-a-lifetime chance.

A diverse, illustrated collage of people

Economist Rob Fairlie says the most recent update of the Kauffman Indicators of Entrepreneurship’s Early-Stage Entrepreneurship data illustrates a highly resilient entrepreneurial community in the face of COVID-19 as well as extended growth in self-starters among emerging majorities, specifically among Latino founders.

A video still from the June 2022 Entrepreneurship Issue Forum, "Kauffman Entrepreneurship Forum: Data Dive – Indicators of Entrepreneurship"

This spring, the Kauffman Foundation released updates to our entrepreneurship indicators, highlighting the latest entrepreneurial trends in both the New Employer Business series and the Kauffman Indicators of Early-Stage Entrepreneurship. The data has sparked conversations about the status of the economy and entrepreneurial activity this past year, particularly around what these trends mean for our cities and communities today. Watch the full forum below.

Kauffman Trends in Entrepreneurship 4: Motivations for Entrepreneurship

Trends in Entrepreneurship | Take a closer look at what motivates an individual to become an entrepreneur, and how it can reflect the broader economic environment as well as influence the nature and direction of the business activity itself.