More Americans are starting their own businesses, not because they’ve lost their jobs and have to do something, but because the Obama economy is offering them more opportunities to captain their own destinies:
The current crop of entrepreneurs is more likely to form a business based on a viable idea, increasing the chances that the ventures will be successful and longer-lasting, says Dane Stangler, Kauffman’s vice president of research and policy.
“Now that the unemployment rate has fallen (to 4.9% from 10% in 2009), you’re seeing people start businesses not out of necessity … but because they’re pursuing an opportunity that’s better than staying at their organization and at salaried jobs,” Stangler says.
The share of entrepreneurs motivated by opportunity rather than necessity reached 84% last year, up from 79% in 2014 and 74% in 2009, a Kauffman report says [link added; Paul Davidson, “Business Start-up Activity Is Surging. Here’s Why,” USA Today, 2016.08.28].
What does President Obama have to do with that positive trend?
Also, the low unemployment rate has made workers more willing to quit their jobs and take a risk. And the Affordable Care Act is making it easier for them to obtain health insurance outside of company-sponsored plans [Davidson, 2016.08.28].
Improved access to health insurance increases liberty and entrepreneurship—I’ve been saying that for years, and ObamaCare and our entrepreneurship numbers show I’m right. Thanks, President Obama!
Related Reading: The Kauffman organization analyzes the state of startups in each state. South Dakota ranks ninth among the 25 smallest states and fourteenth overall on the Kauffman “Index of Startup Activity” for 2015, scoring just above average on a weighted combination of rate of new entrepreneurs, share of entrepreneurs starting a business for opportunity rather than necessity, and startup density. Seventeen states are above average; 34 are below.