The Kauffman Index of Main Street Entrepreneurship: National Trends 2016

28 Pages Posted: 12 Dec 2016

See all articles by Robert W. Fairlie

Robert W. Fairlie

University of California, Santa Cruz - Department of Economics

Arnobio Morelix

Startup Genome

Inara Tareque

Ewing Marion Kauffman Foundation

Joshua Russell-Fritch

Independent

E. J. Reedy

University of Chicago - Polsky Center for Entrepreneurship

Date Written: December 9, 2016

Abstract

For the first time since the recovery got underway, Main Street entrepreneurship activity is at higher levels in 2016 than those recorded before the onset of the Great Recession. This increase was primarily driven by a jump in the business survival rates, which reached a three-decade high of 48.7 percent. This means almost half of new businesses are making it to their fifth year of operation. Greater longevity for startup businesses marks a major turnaround from the Great Recession, which saw the business survival rate drop to a low of 42.9 percent in 2011. Survival rates have increased every year since then. The national Rate of Business Owners and the Established Small Business Density remained steady in the 2016 Main Street Index. The Rate of Business Owners was 60 out of 1,000 adults, the same as the previous year. Business Density changed little, logging 676 established small businesses per 1,000 businesses. However, the results show that U.S. small businesses have gotten smaller over the last 20 years. The smallest of those small businesses – companies with one to four employees – make up 53.1 percent of all established small businesses, up from 49.5 percent in 1996.

Keywords: entrepreneurship, business ownership, self-employment, small business

JEL Classification: L26

Suggested Citation

Fairlie, Robert W. and Morelix, Arnobio and Tareque, Inara and Russell-Fritch, Joshua and Reedy, E. J., The Kauffman Index of Main Street Entrepreneurship: National Trends 2016 (December 9, 2016). Available at SSRN: https://ssrn.com/abstract=2883361 or http://dx.doi.org/10.2139/ssrn.2883361

Robert W. Fairlie (Contact Author)

University of California, Santa Cruz - Department of Economics ( email )

Department of Economics
Engineering 2 Bldg.
Santa Cruz, CA 95064
United States
831-459-3332 (Phone)

HOME PAGE: http://econ.ucsc.edu/~fairlie/

Arnobio Morelix

Startup Genome ( email )

212 Clara Street
San Francisco, CA 94107
United States

Inara Tareque

Ewing Marion Kauffman Foundation ( email )

4801 Rockhill Road
Kansas City, MO 64110-2046
United States

HOME PAGE: http://www.kauffman.org

Joshua Russell-Fritch

Independent ( email )

No Address Available

E. J. Reedy

University of Chicago - Polsky Center for Entrepreneurship ( email )

5807 S. Woodlawn Ave., Suite 207
Chicago, IL 60637
United States
773-834-0812 (Phone)

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