The good news is the rate of startups hit a 15-year high in 2010.
The bad news is they’re not hiring.
This data comes from this year’s Kauffmann Index of Entrepreneurial Activity. They call this phenomenon “jobless entrepreneurship.”
We don’t think this is a huge surprise. A lot of people are starting businesses because they can’t find work.
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They don’t want the responsibility that comes with hiring others. When you hire people, you feel responsible for putting bread on their table as well as your own.
Carl Shramm, the CEO of the Kauffmann Foundation says in the press release about the report, “This trend, if it continues, could have both short- and long-term impacts on economic growth and job creation.”
The bad news is… it WILL continue. The good news is… it WILL continue.
At least that’s what we think. We believe this to be the case for three reasons:
Kondratiev Winter
We’re in the Winter phase of the long cycle called the Kondratiev wave. Winter is the season for entrepreneuring. The transformation to the next generation economy begins during the Winter. The seeds are sown for the creation of wealth in new ways.
A Revolutionary shift
We’re reverse entrepreneuring the Industrial Revolution. A great deal of wealth was created during the Industrial Revolution and the subsequent Information Revolution.
It culminated with the financially-driven boom-turned-to-bust of the real estate market. Now we’re seeing the dawn of the Social Revolution.
The Industrial Revolution took us from home to factory, from entrepreneur to employee. The Social Revolution is bringing many people back home for employment and turning many employees back into entrepreneurs.
Free agency fits people’s lives
Free agency is a natural progression. We talked about the rise of free agents a few years ago and we certainly weren’t the first to see it.
BIGG success is life on your own terms. Generally speaking, you have more control of your life as an entrepreneur than as an employee. You can blend your personal life with your professional life more easily. You can feel a greater sense of fulfillment. It’s a better fit for your life.
The crash of the financial markets and the weak job markets has deepened this desire to feel in control. The social web makes it easier and more affordable to start your own business.
So welcome back … welcome back to the world of cottage industries. Welcome back to the world of home-based businesses. Hello solopreneurs!
Do you have a group that needs help understanding entrepreneurs? Or a group of entrepreneurs who are trying to understand the new economy? Maybe we can help. We give presentations on these subjects all the time. Send us an e-mail at bigginfo@biggsuccess.com or leave a voice message at 888.455.2444.
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Image in this post from bruno-free
