Challenging economic times can serve as a catalyst for the entrepreneurial spirit and lead to the creation of much-needed new jobs: 69% more unemployed US workers started a business in 2009 than they did a year earlier, according to a report from TrendsSpotting.

Over one-half of the companies on the 2009 Fortune 500 list, and just under one-half of those on the 2008 Inc 500 list, were founded during a recession or bear market, TrendsSpotting points out.

Still, one-half (50%) of innovation-driven countries, including the US, registered declines in the numbers of new business startups in 2009, according to the report.

Below, other findings from TrendsSpotting's the New Entrepreneur 2010 & Beyond, compiled from various research sources for Grasshopper.com.

The drive to open a new business comes from within: Nearly two-thirds (66%) of entrepreneurs say they were inspired to start a business by innate desire, not by education or training.

People most likely to be involved in entrepreneurial activities are adults age 55-64, while younger adults (age 20-24) are the least likely to be involved in such activities. Meanwhile, 39 is the average age of US-born technology entrepreneurs at the time they started their companies.

Home-based Businesses

Home-based businesses have become a mainstay of the US economy:

  • 50% of all US businesses are based out of the home.
  • 13 million people are employed by home businesses.
  • 6.6 million home-based businesses contribute at least 50% of their total household income.
  • 8% of home-based businesses have revenues of $500,000+, and 35% have revenues of $125,000+.

Looking for great digital marketing data? MarketingProfs reviewed more than 200 research sources and selected 64 of the best to create the Digital Marketing Factbook a 144-page compilation of data and 110 charts, covering email marketing, search engine marketing, and social media. Also check out The State of Social Media Marketing, a 240-page original research report from MarketingProfs.


Overall, most entrepreneurs report weak business performance as a result of the economic downturn:

  • 66% of entrepreneurs say sales and business profitability were down in 2009.
  • 8% say they added employees in 2009.
  • 71% say they don't expect to add any new jobs in 2010.
  • 61% say the economy is on the wrong track.
  • 50% say it was more difficult to start a business in 2009 than it was in 2008.

In the future, many entrepreneurs will rely on social media for new business opportunities:

  • 41% of entrepreneurs say Twitter delivers great value to their companies.
  • 84% expect their use of Twitter to grow over the next six months.
  • 25% of entrepreneurs say they will commit more resources to social media.

About the data: Findings from the New Entrepreneur 2010 & Beyond were compiled by TrendsSpotting on behalf of Grasshopper.com from combined sources, including the Ewing Marion Kaufman Foundation, Emergent Research, GEM's Global Monitor 2009 Entrepreneurship Survey, MarketingProfs, and Ad-ology Research.


Enter your email address to continue reading

Entrepreneurship During the Recession

Don't worry...it's free!

Already a member? Sign in now.

Sign in with your preferred account, below.

Did you like this article?
Know someone who would enjoy it too? Share with your friends, free of charge, no sign up required! Simply share this link, and they will get instant access…
  • Copy Link

  • Email

  • Twitter

  • Facebook

  • Pinterest

  • Linkedin