Since the recession, and a minimum of partially sparked by it, I’m seeing an actual resurgence of entrepreneurial spirit, and more startup activity than ever before. I consider the days of the “job work” mentality are fortunately waning, with more people looking to get satisfaction by making the world a better place, quite than simply tolerating brain-numbing work to fund enjoyment elsewhere.
Based on the latest Kaufman Startup Activity Index, entrepreneurs are making an unprecedented comeback in America, with data showing the largest year-over-year increase in 20 years. The speed of new entrepreneurs increased about 10 %, from 280 out of 100,000 adults in the 2014 Startup Activity Index, to 310 out of 100,000 adults in the 2015 Index.
There’s further encouraging news for aspiring entrepreneurs on many fronts, simply in case you’re excited about joining the existing ranks:
- Valuations of successful startups have hit an all-time high. An unprecedented number of startups, over 100 eventually count, at the moment are valued above $1 billion, based on a recent Wall Street Journal article. Two of those, Uber and Xiaomi, are already above $40 billion. Thus a record number of entrepreneurs (and staff) are getting wealthy.
- Initial Public Offerings (IPO) are back as an exit strategy. Last year was the most active year for IPOs in the United States since 2000. 275 IPOs were completed in 2014, topping the 2013 total of 222 by greater than 23%. Total U.S. IPO proceeds also shattered 2013’s high-water mark of $55 billion, with a powerful $85 billion in proceeds.
- Funding for early-stage startups is more obtainable than ever. Based on Statistic Brain, angel investors, numbering virtually 300,000, contributed a record $25 billion to early-stage startups in the U.S. in 2014. With more startups, angels still limit their focus to about one out of 40 requests. No wonder 90% of the successful startups still bootstrap.
- Cost of entry for a startup is at an all-time low. I can keep in mind when making a website online for eCommerce might simply require one million greenback investment. Now you’ll be able to create a website online for virtually nothing — and be in your way with your latest invention or personal services. Smartphone apps could be built for lower than $10K, so who wants an investor?
- Startup incubators and accelerators are popping up everywhere. Business incubators were all the rage before the dot-com bubble (700 for profit, many more non-profit). After the bubble burst and the recession, greater than 80% of them disappeared. Now they’re back in each community, with the best even waving money at graduates.
- The world is a now single market, both homogeneous and heterogeneous. Entrepreneurs now can think globally about the opportunity, from day one however begin regionally. This approach, popularly generally known as “glocalization,” means you design and deliver international solutions which have total relevance to each native market you propose to attack.
- Social media is a boon for entrepreneurs and startups. With the key social media platforms today, an entrepreneur can tune a product, build a brand, and grow the business with very low price and a high interactivity never before potential. The weather include communications, mobile platforms, and site-based mostly services.
- Giant firms have lost their ability to innovate. Conglomerates, which were the engines of growth and vitality in the twentieth century, have proven themselves unable to innovate, and have a tarnished public image because of monetary woes and poor management. Most now routinely buy startups for new technology and new products.
- Women are a growing force as entrepreneurs. Based on Fox Business, women-owned businesses have increased 68% since 1997, running greater than 9.1 million businesses in 2014. Women inherently ought to have a bonus, since women already management over 70% of household income and $20 trillion of shopper spending.
- Baby Boomers are joining the fun in record numbers. The number of entrepreneurs who’re Baby Boomer starting a business has grown from 14 % in 1996 to over 30 % last year. Actually, in each certainly one of the last 15 years, Boomers between the ages of 55 and 64 have had a better rate of entrepreneurial activity than Gen-Y.
Wanting ahead, the National Venture Capital Affiliation (NVCA) predicts that 2015 will bring additional excellent news for entrepreneurs across several fronts, together with more investment, greater IPO volume for exits, greater employment opportunities at startups, and much more enhancements in the economy.