KANSAS CITY, MO -- 06/09/09 --
According to a new study by the Ewing
Marion Kauffman Foundation, challenging economic times can serve as the
rebirth of entrepreneurial capitalism, leading to the creation of
much-needed new jobs.
The study, "The Economic Future Just Happened," found that more than half
of the companies on the 2009 Fortune 500 list were launched during a
recession or bear market, along with nearly half of the firms on the 2008
Inc. list of America's fastest-growing companies. The report also suggests
a broader economic trend, with job creation from startup companies proving
to be less volatile and sensitive to downturns when compared to the overall
economy.
"You can see the story of the American economy in these numbers," said Carl
Schramm, president and CEO of the Kauffman Foundation. "History has
demonstrated this time and again: new firms create new jobs and fuel our
economy. Policies that support entrepreneurship support recovery."
The study points out that while recessions often create widespread economic
grief, they also can encourage potential entrepreneurs, acting "as an extra
spur to founding a new company, if the founders perceive their prospective
competition might be weakened." Rising unemployment can benefit new
enterprises: entrepreneurs may view unemployment as an opportunity to start
a company, and seize the advantage provided by the ability to tap into a
larger pool of potential employees.
"While startups may not begin with the intention of reaching the Fortune
500 list, they are hard at work under the radar," said Dane Stangler, senior
analyst at the Kauffman Foundation and author of the study. "These
companies may remain invisible to most of us, or they may one day grow into
household names. Either way, they are steadily recreating our economy --
generating jobs and innovations."
Stangler said companies that reach the Fortune 500 and Inc. lists
demonstrate the strength and flexibility of successful entrepreneurial
enterprises.
"We imagine the Fortune 500 to be giant dinosaurs lumbering across the
landscape," Stangler said. "That's not the case. The turnover and churn on
the list is remarkable. Successful, big companies have to be
entrepreneurial, and they are."
The complete study is posted on www.kauffman.org.
About the Kauffman Foundation
The Ewing Marion Kauffman Foundation is a private nonpartisan foundation
that works to harness the power of entrepreneurship and innovation to grow
economies and improve human welfare. Through its research and other
initiatives, the Kauffman Foundation aims to open young people's eyes to
the possibility of entrepreneurship, promote entrepreneurship
education, raise awareness of entrepreneurship-friendly policies, and find
alternative pathways for the commercialization of new knowledge
and technologies. It also works to prepare students to be innovators,
entrepreneurs and skilled workers in the 21st century economy through
initiatives designed to improve learning in math, engineering, science and
technology. Founded by late entrepreneur and philanthropist Ewing Marion
Kauffman, the Foundation is based in Kansas City, Mo. and has approximately
$2 billion in assets. More information, visit www.kauffman.org, and follow
the Foundation on www.twitter.com/kauffmanfdn.
Contact:
Rossana Weitekamp
516-792-1462
Email Contact
Barbara Pruitt
Kauffman Foundation
816-932-1288
Email Contact
