Kauffman Foundation: Los Angeles an Entrepreneurial Powerhouse

The Kauffman Index of Entrepreneurial Activity shows Los Angeles had the highest entrepreneurial activity rate at 580 per 100,000 adults.

From Los Angeles Business:

“Entrepreneurial activity was a bit down in 2011, but Los Angeles remains an entrepreneurial powerhouse according to the Ewing Marion Kauffman Foundation.

The Kauffman Index of Entrepreneurial Activity shows Los Angeles had the highest entrepreneurial activity rate at 580 per 100,000 adults.

The Index shows that 0.32 percent of American adults created a business per month in 2011 — a 5.9 percent drop from 2010, but still among the highest levels of entrepreneurship over the past 16 years.

“The Great Recession has pushed many individuals into business ownership due to high unemployment rates,” said Robert Litan, vice president of research and policy at the Kauffman Foundation, in a statement. “However, economic uncertainty likely has made them more cautious, and they prefer to start sole proprietorships rather than more costly employer firms. This ‘jobless entrepreneurship’ trend negatively effects job creation and the larger economic recovery…”

READ ARTICLE [web]
READ THE REPORT [web]
Kauffman Foundation [web]

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