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2005 a Great Year for Entrepreneurship
Demographics and economic factors are driving a surge in self-employment, creating optimism that the overall economy will continue to grow in 2005.
For the first time in ten years, self-employment rates are on the rise across the country, according to a recent study sponsored by the U.S. Small Business Administration (SBA). The report indicates that tech start-ups, minorities, women and baby boomers are driving the surge.
"The great news is that self-employment opportunities are opening up to a more diverse population than ever before," said Terry Powell, CEO and founder of The Entrepreneur's Source.
Currently, self-employment rates are highest in the West at 11.2 percent and lowest in the Midwest at 8.8 percent. The rate in the South is 9.9 percent and the Northeast is 9.5 percent.
Baby boomers are looking for more security later in life as large corporations continue to downsize and buy out senior staff members. Recent data shows that the number of self-employed people over the age of 50 has jumped 23 percent since 1990 to 5.6 million workers.
In addition, women now make up 32 percent of the country's 12.2 million business owners, up from 25 percent in 1983, according to the SBA. Hispanics, African-Americans and Asians also made strong gains in self-employment in the past two years.
"Self-employment is critical to our economy," said Thomas M. Sullivan, chief counsel for Advocacy at the SBA. "The increase in self-employment rates for women, blacks and Latinos show that small business ownership can move minorities and women further into our economic mainstream."
This is also good news for the overall economy, according to Powell. "Entrepreneurship is central to the economy," said Powell, "fueling innovation, productivity and growth
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