entrepreneurship

Entrepreneurship is on the rebound following a “Great Recession hangover,” according to a new study by the Kauffman Foundation, but turbulent shifts will affect its shape in the coming years. During its eighth annual State of Entrepreneurship address in Washington D.C. this morning, Wendy Guillies, Kauffman president and CEO, outlined how, despite the resurgence, new firm formation remains in a long-term deficit and called for a “national wakeup call.”

The Department of Homeland Security has amended its regulations surrounding its discretionary parole authority in order to increase and enhance entrepreneurship, innovation, and job creation in the U.S. The final rule, which will go into effect July 17, adds new provisions that can be used on a case-by-case basis with respect to foreign entrepreneurs of start-up entities who can demonstrate a potential for rapid business growth and job creation, and thus provide a significant public benefit to the U.S. That potential could be indicated by, among other things, the receipt of significant capital investment from U.S. investors with established records of successful investments, or by obtaining significant awards or grants from certain federal, state or local government entities. If granted, the parole would provide a temporary initial stay of up to 30 months (which may be extended by up to an additional 30 months) to facilitate the applicant's ability to oversee and grow his or her start-up entity in the United States.

This week, America remembers the 75^th anniversary of the attack on Pearl Harbor and its entrance into World War II. Veterans of World War II have had a considerable impact on the current economy: The Bureau of Labor Statistics finds that World War II veterans had the highest rates of self-employment of any period of service. The topic of veteran entrepreneurship, however, has received relatively little scholarly attention compared to other aspects of the military experience, according to a recently released report by the Institute for Veterans and Military Families (IVMF) at Syracuse University. This research, which examines qualitative and quantitative research on the topic, coupled with new datasets emphasizing the demographics of self-employment, sheds light on the current state of veteran entrepreneurship.

As a way to support populations that are underrepresented in entrepreneurial activities, the Kauffman Foundation has announced $4.3 million in grants to 12 organizations that provide entrepreneurial support services to women and minorities. The awardees were selected from more than 376 applicants and range in both geography and industry-focus. They will receive awards ranging from $87,000 to $420,000 over the next two years. The Kauffman Foundation Inclusion Challenge grantees are:

Over the last two months, the Economic Development Administration (EDA) has made nearly $35 million in investments intended to spur economic prosperity across the country including nearly $28 million for communities impacted by transformations in the energy industry. These efforts are intended to unlock the potential of regional assets including community members, local institutions of higher education, and regional industies by funding entrepreneurship, innovation, research and development (R&D) activities, and other capacity-building efforts. Among these investments, the EDA announced the winners of the University Center Economic Development Program Competition; and, Partnerships for Opportunity and Workforce and Economic Revitalization (POWER) Initiative.

Although much has been written on the value of immigrant entrepreneurship, relatively little research to date focuses on strategies for supporting these individuals. Welcoming America, a national nonprofit and non-partisan organization focused on immigrant inclusion, has addressed this gap by releasing a how-to-guide for those interested in supporting immigrant entrepreneurship in their cities. Produced with Global Detroit, an initiative focused on southeast Michigan’s international community, Seeds of Growth describes practical ways for regions across the nation to leverage opportunities associated with including immigrant entrepreneurs in local economic development strategies and programs.

Because existing evidence points to the presence of broadband as having a positive connection to the economic health in rural areas, numerous states and the federal government have made increasing broadband in these places a top priority.  In particular, many rural areas view broadband as an important tool in attracting entrepreneurs and other creative-class employees. Although this tactic is well intentioned, new research suggests that the association between expanded rural broadband availability and the proliferation of entrepreneurship and creative-class employees may not be as strong as one might think, and that the relationship may actually be negative.

Millennials internalized the effects of the most recent recession and revealed their beliefs about the economy and jobs future in a recent poll conducted by EY, a professional services company, and the Economic Innovation Group. Nearly one-third believe their community is still in a recession and 78 percent are worried about having good-paying job opportunities, according to the poll. Hard work is an important factor to get ahead in life, say 88 percent of the 18-34 year olds, and two-thirds say having a college education is important, but just 49 percent believe the benefits of a college education will be worth the cost. More than half feel a great deal of confidence about the military and colleges and universities, but other institutions such as the government, organized religion and the news media garner far less confidence.  While 78 percent consider entrepreneurs successful and 62 percent have considered starting their own business, 42 percent cite the lack of financial means as the top obstacle to launching a startup.  Instead, Millennials appear to prefer to climb the corporate ladder, with 44 percent saying the best way to advance their career is by staying at one company and working their way up the ladder and another 25 percent cite moving between different companies and advancing along the way.  Only 22 percent felt that starting their own company would be the best way to advance.

Over the last month, the Economic Development Administration (EDA) announced over $8 million in grants to expand entrepreneurial and business support services in Alabama, New York, and Texas including:

Researchers of American entrepreneurship now have a timelier socio-economic portrait of the nation’s employer-owned businesses as a result of a public-private partnership between the U.S. Census Bureau, the U.S. Department of Commerce’s Minority Business Development Agency, and the Kauffman Foundation. Last week, data from the first Annual Survey of Entrepreneurs were made publicly available, which provides a detailed picture of the American entrepreneur in 2014 by examining race, ethnicity, gender, and geography. A brief released by the Census Bureau notes that more than 480,000 firms with paid employees (roughly 8.9 percent) of the 5.4 million U.S. firms with paid employees in 2014 had been in business for less than two years, according to the recent Annual Survey of Entrepreneurs data.