A new study finds an increase in entrepreneurship during 2008 as the recession was taking hold, reports The Wall Street Journal.
The Kansas City-based Kauffman Foundation found that in 2008, an average of 320 out of 100,000 adults created a new business each month, compared with 300 out of 100,000 adults in 2007. That doesn't sound surprising with so many people laid off.
Inc.com quotes Paul Kedrosky, senior fellow at the foundation, calling the idea that recessions breed entrepreneurship "a fairy tale people like to tell each other," but adding there's too little quality research to say it's true. He adds:
Entrepreneurship is about innovation, but it's also about scarcity, and there's no better way to weed out the wimps than with a depression or recession.
He said he expects some interesting companies to emerge in the next 10 years or so, especially in automobiles, finance, and media. But, hey? Aren't those the ones struggling so much right now?