What Is True/Slant?
275+ knowledgeable contributors.
Reporting and insight on news of the moment.
Follow them and join the news conversation.

May. 21 2010 - 1:39 am | 241 views | 1 recommendation | 8 comments

More Small Businesses Started In 2009 Than During The Last 14 Years

So much for the anti-business meme against Obamanomics…

From The HIll:

More entrepreneurs launched new businesses in 2009 than at any other time in the past 14 years, according to a study released Thursday.

The figures from the Kauffman Index of Entrepreneurial Activity report that entrepreneurs have remained a strength of the U.S. economy amid one of the worst recessions on record.

“Entrepreneurship in America is unbelievably resilient,” said Dane Stangler, a research manager for Kauffman.

So what does this mean?

Well, first off…jobs, jobs, jobs!

These are the folks who didn’t feel the credit crunch because they started their own businesses with their own money…and some help from the government’s fiscal stimulus…which came in the form of grants and loans for small businesses.

More as it develops…


Active Conversation
8 Total Comments
Post your comment »
  1. collapse expand

    You’re painting with a very broad brush. I doubt that every “entrepreneur” who started a business in 2009 : 1) had plenty of their own capital with which to do so; 2) created a lot of jobs; 3) got a grant from the government.

    Millions of people can’t get a job, still. Some of them are now sufficiently desperate — i.e. this is a “choice” born of necessity not desire — they are running their own show. I’d like to know how “business” is being defined.

    If there were not 10% unemployment, would this sudden rush to run your own shop have appeared? I doubt it.

    Many, many existing small businesses have closed or laid off most of their workers because of slow/late payers and/or restricted access to credit.

    • collapse expand

      No, every single one of them did one of those three things. :-)

      I’m just saying that those were definitely some contributing factors, with government intervention being one of them. Also, small businesses are the engine of our economy and probably a big reason why unemployment started to slow and drop. Because they don’t have to worry about stockholders so they don’t have to keep their workforce leaner than it should be. Agreed?

      Last, I don’t know how you can say “many, many small businesses” when these numbers fly in the face of that. Sure, businesses open and businesses close, but 2009 was a banner year for them…and the numbers prove that.

      (By the way, I amended my post since you commented. I didn’t like the first sentence after reading it again. Felt redundant. Also, I added “loans” in with grants because they were both part of the recovery package.)

      In response to another comment. See in context »
  2. collapse expand

    A few concerns not addressed in your post:
    As Caitlin pointed out, a lot of entrepreneurs opened businesses because they couldn’t do anything else. Particularly in my fields (engineering and law) I’ve heard a larger number of horror stories about recent graduates attempting to open solo practices or attempt to do consulting work in hopes of increasing their networks to find a job. Many of the people who open businesses don’t really know how to run a business successfully, and a sizable number of them won’t be profitable in two years (which I believe is the standard rubric)

    What are the average number of employees of the small businesses started in 2009? How many of them are employing non-family members?

    While I don’t disagree that the success of small businesses is important to our economic future, there is a tendency for small businesses to be started by older people who do have some capital and training. Recent college graduates are still being left out of the recovery, and most small businesses lack the ability/finances to train them into productive economic recoverers. [Yes, that was clunky]

  3. collapse expand

    Justin…you’re better than that…desperation is driving this wave of “start-ups.” $10 trillion of the nation’s net wealth is gone in the last 3 years. As reported in the NY Times, True / Slant itself was created in response to lost jobs and over $200 billion of lost value in the 15 largest media companies. Google has far more to do with start-ups like yours than Obama. And Caitlin is right: the bail out money enabled “too big to fail” banks to survive – and squeeze MANY, MANY small businesses out of business with overnight reductions in credit lines. Close with a positive? This comedy of bail-out errors has resulted in some of the cheapest office space rates in history! But that’s short lived because there’s a wave of foreclosures coming to commercial real estate. (oops – was trying to close with a positive…)
    Rooting for you guys at True / Slant! (there, that’s better!)

Log in for notification options
Comments RSS

Post Your Comment

You must be logged in to post a comment

Log in with your True/Slant account.

Previously logged in with Facebook?

Create an account to join True/Slant now.

Facebook users:
Create T/S account with Facebook

My T/S Activity Feed


    About Me

    I run the multi-partisan blog Donklephant. If you never been before, it's a site where everybody is welcome to come and have an open, honest debate about the news of the day. Sometimes it works and sometimes it doesn't, but it's always interesting.

    See my profile »
    Followers: 71
    Contributor Since: March 2009
    Location:Kansas City, MO