Early Findings from the Entrepreneurial Research Consortium
Data from the 1995 and 1997 pilots and the 1998-99 study are starting to emerge
The study projects that 10 million to 13 million people are trying to start 5 million to 6 million businesses. In 37% of U.S. households, someone has founded, tried to start, or helped fund a business.
Roughly 25% to 40% of startups have positive cash flow within 12 months. Between 15% and 20% of would-be entrepreneurs quit in the same period.
80% of new entrepreneurs have full- or part-time jobs; only 2% are unemployed when they start businesses.
African Americans and Hispanics are underrepresented as business owners in the total population, but made up a disproportionately large share of startups.
Twice as many men as women start businesses overall, but among baby boomers (aged 34 to 55), men and women start businesses in almost equal numbers.
Men starting businesses devote 12 hours a week to housework and child care, vs. 14 hours for men who aren't entrepreneurs. In contrast, women running startups spend 34 hours a week on housework and child care, vs. 32 hours for non-business owners.
Entrepreneurs are most likely to live in the West and least likely to live in the Midwest.
About three in five startups are team efforts, and the average startup team has 2.2 people.