U.S. on Cusp of Entrepreneurial Boom – Study Suggests Baby Boomers Will Lead the Way

A new study published by the Kauffman Foundation indicates the U.S. might be on the cusp of an entrepreneurial boom.The report contends that although the U.S. will, at some point, recover from the current recession, the overriding question is whether the country will return to the high growth and productivity rates of the post -1995 decade, or will it experience a sustained period of sluggish growth? The primary determinant of this outcome will be the nation’s level of entrepreneurial activity. In terms of job creation, innovation, and productivity, entrepreneurs drive growth.

Several facts emerged in the course of Kauffman Foundation research that indicate the U.S. might be well positioned for accelerated growth—not in spite of an aging population but because of it. To the extent that entrepreneurship is a key driver of economic growth, this could bode well for America’s growth potential. 

Data suggests that the nation’s rise in entrepreneurial activity can be credited to an aging population.  In every single year from 1996 to 2007, Americans between the ages of 55-64 have accounted for a higher rate of business formation than those aged 20-34.   Contributing factors to this phenomenon may include the current recession, the decline of lifetime employment, longer life spans and the incredible experience, knowledge and skill sets of this age group. 

Download the full Kauffman study:  “The Coming Entrepreneurship Boom” by Dane Stangler.

View Kauffman CEO Karl Schramm on CNBC discussing the study.