Entrepreneurship Suffers During Recession

Filed in archive General on December 17, 2011

© US Mission Geneva

Entrepreneurship has been the biggest loser in this period of recession and post recession. Many people who would have gone into entrepreneurship have been discouraged by the poor sales, tight credit and huge competition from other entrepreneurs.
Entrepreneurship is widely seen as the key to the recovery of the economy since two thirds of the new jobs are generated by these small businesses. According to the Kauffman Foundation, which provides support for entrepreneurship, small businesses are often seen to increase the job growth during the starting phase.
The Bureau of Labor Statistics has stated in a recent report on entrepreneurship that the number of new businesses that started in the financial year that ended on March 2010 was lower than any other year. The technology and web based economy are doing well with many new entrepreneurs emerging in the Silicon Valley but the basic economy is not in such a good condition. If this continues then entrepreneurship might take a backseat in many minds.