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What?? That's a lot of businesses being created, but my question is this: when an unemployed person starts a small business, is he/she still conted as unemployed, or as "dropped out of the pool". Maybe this explains some of the confusion about the participation rates.
Last year, 476,000 new businesses were created each month, mostly in the construction and services industries, according to the Kauffman Index of entrepreneurial activity.
That's down 7% from 2012, when 514,000 new businesses were being created monthly.
The 2013 decline also marks the second straight yearthat new business creation has dipped, putting the level of new entrepreneurial activity at pre-recession levels.
As the labor market keeps growing, there's less pressure to start a business out of necessity, said EJ Reedy, director with the Kauffman Foundation.
If you start a new business, my understanding is that you are no longer counted as unemployed - you cannot claim benefits. Same is true if you go to school full time.
If you start a new business, my understanding is that you are no longer counted as unemployed - you cannot claim benefits. Same is true if you go to school full time.
Yes, but would you be counted as a part of the 'job participation pool'?
I know one is never to question information found on the Internet, but doesn't 514,000 new businesses created each month (in 2012) seem a tad high? Or, rather, in 2012, 6,168,000 new businesses were started?
Yet the number fell for 2013, when only a total of 5,712,000 new businesses were started?
Hence, in the past two years alone, 11,880,000 new businesses were begun?
I know one is never to question information found on the Internet, but doesn't 514,000 new businesses created each month (in 2012) seem a tad high? Or, rather, in 2012, 6,168,000 new businesses were started?
Yet the number fell for 2013, when only a total of 5,712,000 new businesses were started?
Hence, in the past two years alone, 11,880,000 new businesses were begun?
That seems like a lot.
Yes, I was very surprised about it. No, I have not verified the number, but I do know most new businesses fail, so you can just add up the numbers and say we have 12 million new businesses now.
Last edited by Finn_Jarber; 04-09-2014 at 06:40 AM..
Some, with desirable skills who have been laid off or took early retirement turn around and work as self employed independent contractors. And some of them contract with their former employers.
Most small businesses are one man shows. When and where possible, they tend to work at home.
I know one is never to question information found on the Internet, but doesn't 514,000 new businesses created each month (in 2012) seem a tad high? Or, rather, in 2012, 6,168,000 new businesses were started?
Yet the number fell for 2013, when only a total of 5,712,000 new businesses were started?
Hence, in the past two years alone, 11,880,000 new businesses were begun?
That seems like a lot.
I've also heard, according to Bloomberg, that 8 out of 10 businesses fail within the first 18 months. So that may show that while you have 6.1M businesses, by the end of 2013 that number would be down to 1.2M and the 11.88 would be more like 2.4M once their 18 months is up.
Its still a very nice number, but not as unfeasible as almost 12 million.
Some, with desirable skills who have been laid off or took early retirement turn around and work as self employed independent contractors. And some of them contract with their former employers.
Most small businesses are one man shows. When and where possible, they tend to work at home.
Yes, this is becoming very common, especially in IT.
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