Entrepreneurship and Demographics

Posted on by biJay345

Good business ideas by entrepreneurs has been the driving force behind America’s success.  It is interesting to break down entrepreneurial activity based on demographics.  The highest rate of entrepreneurial activity comes from the 55–64 age group. This information is gleaned from data taken over the past decade by Kauffman.org. The 20–34 age bracket had the lowest entrepreneurial activity.

Fifty-four percent of the Millennials (Generation Y – born after January 1, 1980) in the US have an entrepreneurial interest. They have either already started a business or are thinking about it.

Fourty six percent of the workforce are women and more than 50 percent of college students in the US are now females. From an entrepreneurial perspective only about 35 percent of startup business owners are women owned. This was from a study by Kaufmann group.  The title of the study was called: Overcoming the Gender Gap: Women Entrepreneurs as Economic Drivers, September 2011

Who are the entrepreneurs who start a new business:

70 percent are men-owned; 30 percent are women-owned. Although there are more women than men in the US, more men tend to start businesses.

81 percent are white-owned –  Aside from being the largest ethnic group, the population is more educated than the other minority groups.

9 percent are African-American-owned – Although 12% of the US population is of this ethnic group, their percentage share is lower by 3 percent.  At the same time a larger percentage of blacks are entrepreneurs than from the other minority groups.

6.6 percent are Hispanic-owned – this shows that many Hispanics are employees rather than being business owners.  As a national strategy, there are huge opportunities to encourage the Hispanic population to start their own business.  Especially in light of the fact that Latin American is one of the fastest growing economies in the world, the US Hispanic population could play a pivotal role.  The government can encourage this sector and help them come up with good business ideas for the Hispanic market.

4 percent are Asian-owned – this is comparable to the population percentage of this ethnic group.

5 percent are owned by Native Americans, Pacific islanders and other ethnic group not mentioned above.  It is quite interesting that such a large percentage of the entrepreneurial group comes from this small minority group.  Further study may be done to determine the factors that encourage this group to be entrepreneurs.  Such factors may be emulated in other groups that do not have a tendency to be entrepreneurs.

The Race or Ethnicity of the US population is as follows.  With a population of 312 million, US is the third most populous country in the world (world population is 6.99 billion).  With a high degree of urbanization (over 80%), most people live in the larger metropolitan areas.  This leaves large areas of un-inhabited land.

 

U.S. population
Race / Ethnicity Number Percentage
White

196,817,552

63.70%

Black or African American

37,685,848

12.20%

Asian

14,465,124

4.70%

Two or more races

5,966,481

1.90%

American Indian or Alaska Native

2,247,098

0.70%

Some other race

604,265

0.20%

Native Hawaiian or other Pacific Islander

481,576

0.20%

Hispanic or Latino

50,477,594

16.30%

 

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