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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.



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