Small Business Startup News

Entrepreneurship Booms In Economic Downturn

Written by Jenna Weiner
Published: 12/24/2009

Young people are increasingly likely to pursue entrepreneurship.

Many grads faced a dismal job market last May and continue to face it now. With unemployment rates for 20- to 24-year-olds at 16 percent, a growing number of recent college and grad-school graduates are becoming self-employed, which could be interesting news for entrepreneurs who will find their ranks growing.

Entrepreneur Getting Started

According to the Wall Street Journal, the percentage of job seekers who started their own companies increased to 9 percent in the third quarter of 2009, up from 5 percent at the end of 2008. This spike coincides with class of 2009 university graduations, when graduates' employment rate dropped 22 percent from the previous class year.

"Given the state of the economy, and the state of the job market, many young people are getting the push they needed to become entrepreneurs," Bo Fishback, vice president of entrepreneurship at the Kauffman Foundation, told the source.

The number of young entrepreneurs is only expected to grow; according to the source, employers are planning to hire 7 percent fewer graduates from the class of 2010 than they hired from the class of 2009.

Still, entrepreneurs require a lot of unique skill sets; many are uncertain as to whether entrepreneurial know-how can be acquired through education without experience.

The Kauffman Foundation reports that many colleges are currently expanding their entrepreneurial programs with the hopes of preparing students for self-motivated business endeavors.

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