WASHINGTON, May 9, 2018 /PRNewswire/ -- Entrepreneurship
rates in the first quarter of 2018 neared peak levels following the
recession, according to new research released today by Paychex. The
report, entitled "Accelerating the Momentum of American
Entrepreneurship," evaluates the rate of entrepreneurship before,
during, and after the recession, and the attitudes and perceptions
of small business owners.
The research shows that the rate of entrepreneurship grew
steadily for several years following the recession in 2009,
moderated from 2014 to 2016, started to accelerate again last year,
and nearly reached its highest level since the recession in the
first quarter of 2018. Additionally, the rate of small business
failures has consistently trended lower since the start of
2014.
The report is based on payroll data of a subset of Paychex
start-up clients with 1-49 employees and survey responses from more
than 500 business owners (1-500 employees). Entrepreneurship data
is broken down by business owner gender, geography, age, and
industry. An overview of the data was shared today in Washington, D.C. at "Small Businesses, Big
Ideas: Entrepreneurship in Action," a policy briefing event
presented by The Hill.
"Our data affirms that entrepreneurship played an important role
in the growth of the economy coming out of the recession," said
Martin Mucci, Paychex president and
CEO. "Coupled with the positive feedback we received from
business owners about their attitudes and perspectives, the clear
message from this report is that the state of entrepreneurship is
strong. We're proud to salute and support the vital role of
entrepreneurs in creating jobs and driving the economy."
Small Business Optimism
Reflecting the overall growth
in entrepreneurship, today's business owners are positive about the
business environment. Nearly two thirds (64 percent) are optimistic
or very optimistic about their business' ability to make a profit;
and 58 percent are optimistic or very optimistic about their
business' prospects for growth.
Further demonstrating the overall positive outlook of business
owners, more than three quarters of business owners (79 percent)
would recommend starting a business today, and 71 percent of
business owners describe today's business environment as better or
the same compared to when they started their business. Based on
their experience, business owners who started their company during
or closely following the recession (4-9 years ago) were more likely
(57 percent) to say the business environment is better today than
when they started compared to those who started their companies 20
or more years ago (32 percent).
Barriers to Success
Survey respondents were also
asked to identify barriers to starting and running a successful
business. The clear majority (90 percent) of business owners are at
least slightly concerned about rising costs. In today's tightening
labor market, hiring is also a growing concern: 67 percent of
business owners are at least slightly concerned with finding
quality employees.
Business owners agree that there are steps the government can
take to combat these barriers and help encourage business
formation, including: offering more government support for
businesses, e.g., coaching, networking, or mentoring (34 percent);
and decreasing regulations (33 percent).
Geographic and Generational Insights
Among the four
states in the U.S. with the highest population (California, Florida, New
York, and Texas),
New York and Florida are the leading states for start-ups.
When examining the data by generation and gender, it reveals the
percentages of entrepreneurs age 50 and older and business starts
by females have increased during the past decade.
The full report can be downloaded here.
About the Accelerating the Momentum of American
Entrepreneurship Report
The data included in the
Accelerating the Momentum of American Entrepreneurship Report
references two sources: A historical analysis of a subset of
Paychex clients, with 1-49 employees, measuring the rate of
entrepreneurship in the United
States over the past decade and results of the Paychex Small
Business Survey, administered by Bredin. The survey was conducted
online between March 9, 2018 and
March 19, 2018 and polled 500
principals of U.S. companies with less than 500 employees.
Disclaimer: The data cited in this news release
represents the opinions of the survey respondents and not those of
Paychex or its employees.
About Paychex
Paychex, Inc. (NASDAQ: PAYX) is a
leading provider of integrated human capital management solutions
for payroll, HR, retirement, and insurance services. By combining
its innovative software-as-a-service technology and mobility
platform with dedicated, personal service, Paychex empowers small-
and medium-sized business owners to focus on the growth and
management of their business. Backed by 45 years of industry
expertise, Paychex serves approximately 605,000 payroll clients as
of May 31, 2017, across more than 100
locations and pays one out of every 12 American private sector
employees. Learn more about Paychex by visiting www.paychex.com,
and stay connected on Twitter and LinkedIn.
Media Contact
Lisa
Fleming
Paychex, Inc.
585-387-6402
lfleming@paychex.com
@PaychexNews
Colleen Bennis
Eric Mower + Associates
585-389-1865
cbennis@mower.com
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SOURCE Paychex, Inc.