Optimism Grows for Start-ups

According to a recent survey, Americans were more optimistic about starting a business in 2013 than in any year since 2001.

Of 5,698 U.S. adults polled from April-June, 2013, 47% felt there were “good opportunities” for starting a new business (up from 43% in 2012, and 25% in 2006).

Stephen Bronars, an economist in Washington, D.C., notes that people are more likely to launch businesses during stronger economic times because they have greater access to capital from a bank, investor or family members.

Unfortunately, the survey findings conflict with a report released in April, 2014, that showed a decline in the creation of new businesses in the U.S. The study was done by the Ewing Marion Kauffman Foundation, a Kansas City, Mo., advocacy group for entrepreneurship, and is based on data from the U.S. Census Bureau and the Labor Department. The findings conclude that only about 476,000 new U.S. businesses were started each month in 2013, down 7% from 2012 and 12% from 2011.

According to David Neumark, professor of economics at the University of California, Irvine, “it can be very difficult to measure” when a business starts using census data and other government sources. Some people may not report income taxes because their new businesses aren’t yet making any money.

Another factor in survey responses is how respondents define a start-up. Some may not consider a business a true start-up until it begins making money.

Please read the article by Sarah E. Needleman in its entirety here.

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