Editor’s note: Amy Huffman is fascinated by the intersection of technology, economic development, startups and the economy. She uses data to discover how the entrepreneurial ecosystem impacts startups and their ability to succeed. She wrote this post for ExitEvent, a news content partner of WRAL TechWire.
RALEIGH, N.C. - Why did you start (or are you starting) your business?
Out of necessity—you lost your job or needed more income?
Or did you spot an opportunity in the market you thought your idea could fill?
Your answer to this question matters because whether your business was born out of “necessity” or “opportunity” is a good indicator of the status of the economy’s health, according to the Ewing Marion Kauffman Foundation’s most recent iteration of its annual Entrepreneurial Activity Index.
Nationally, entrepreneurial activity is declining, but activity in North Carolina increased in 2013, bucking the national downward trend. The Kauffman report suggests declining entrepreneurship could be a sign that the economy is improving—in good economic times, fewer entrepreneurs begin their businesses out of “necessity” than in poor economic times. If this hypothesis is true and N.C.’s rates are rising, what does this mean for our economy and entrepreneurial ecosystem?
In this post, I want to share the data and explain that, though the Kauffman report’s hypothesis is valid,
For the entire story, check out the post at ExitEvent.
