Entrepreneurship in the United States has seen tumultuous times in recent years, though many new reports seem to imply that business owners are experiencing much success, regardless of tough economic conditions. Evidence can be seen in the number of startups popping up around the nation, as well as the high proportion of new hiring coming from entrepreneurial firms.
Now, The Entrepreneurs' Organization (EO), a global network with more than 8,700 member business owners, reports that new data has revealed entrepreneurs are, in many ways, beating the recession. The organization conducts a survey of business owners for a research project – its Global Entrepreneur Indicator – twice each year to measure the state of entrepreneurship.
According to the EO, economic conditions among these business owners has been improving consistently over the last two years, though some areas have fared better than others. This time around, the index showed massive year-over-year increases in several categories, including job creation, business environment and revenues.
Entrepreneurs were found to be hiring much more rapidly than they were two years ago. Fifty-nine percent of the 2,200 entrepreneurs surveyed across the globe cited net employment increases of full-time workers from January through June. This, the EO notes, is roughly 17 percent higher than responses from 2010.
"We are seeing some very positive signs from the world's entrepreneurial community," Jason Jacobs, Global Entrepreneur Indicator initiative lead researcher, explained. "Hiring, revenues and profitability are all on the rise, and there seems to be a general optimism about the business climate."
"Compared to the pessimism we observed in the survey six months ago, the trending seems to be headed in the right direction," he continued. "Considering the entrepreneurial sector's place as the driver of growth and innovation, any momentum in the right direction is welcome."
Some regions fared better than others, as the United States and Latin America/Caribbean regions experienced the top ranking rates of hiring, at 60 percent and 66 percent, respectively. Further, a little over 60 percent of entrepreneurs plan to increase their number of employees through the next two quarters.
Regarding revenues and profits, the EO noted that the Europe/Middle East and South Asia regions did not see good results, pulling down the overall index figures. However, 60 percent of entrepreneurs cited improvements in net profits over the six months preceding the June survey. Maybe even more encouraging, 80 percent expect the trend to continue upward.
Finally, the business environment category of the indicator revealed that entrepreneurs are far more confident in the coming months than they have been in recent years. According to the EO, 23 percent of entrepreneurs expect conditions to take a turn for the worse, while a combined 77 percent believe the state of affairs will either improve or stay steady.
Other key indicators of economic growth have also been reported in recent months that seem to signify the present an opportune time to start a business or expand operations. This includes improvements in the commercial real estate sector – as well as record low prices on real estate – and eased lending standards among most major United States banks.
If you are a small business owner looking for loans to either get your business idea off the ground or reach into new markets, consider using a service like BoeFly. This firm has thousands of participating lenders, and with its complex algorithms, matches borrowers with the financial institution best-suited to their needs.
Additionally, the firm only requires one loan application, ensuring the most efficient and effective process.