BW Online | November 18, 2002 | A World of Difference for Entrepreneurs

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NOVEMBER 18, 2002

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A World of Difference for Entrepreneurs
The number of Americans developing their own businesses shrank a tad in 2002. Bad news? Not compared to some major U.S. trading partners

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The news of a drop in the number of adults starting or running new businesses may not come as much of a shock, given the economic downturn. But what should surprise, however, is the strong element of upbeat news in the latest Global Entrepreneurship Monitor (GEM): The 2001 survey's decline was a mere 0.5%. Better yet, on an international scale, the U.S. is still leading the pack.

The survey -- conducted by Babson College and the London Business School for the Ewing Marion Kaufman Foundation -- found strong declines in entrepreneurial activity everywhere else it looked. In Japan, entrepreneurship witnessed a 65% decrease. In France, it was down 57%, and in Italy, by 42%. Meanwhile, Germany saw a 35% drop, and Britain experienced a 31% shrinkage.

In the U.S., where 10% of the adult population is either launching a business or has done so within the past 42 months, the decline on 2001 levels was a mere .5%, according to GEM.

In late 2000, when what had been a nascent economic downturn began in earnest, entrepreneurial levels stood at at an impressive 16%. Commenting on the latest statistics, Larry Cox, GEM project director, had these optimistic words to offer: "It appears that the U.S. has stabilized at a level of entrepreneurial activity that will allow us to keep rebuilding, or at least maintaining, our current position for some time."

By Alison Ogden in New York

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