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Microbusinesses and self-employment increase as recession drags down salary-employment
By EVELYN BRANDT
Posted: 6/26/2009 5:39:05 PM

Though the national unemployment rate climbed to 9.4 percent last month, the number of self-employed proprietors and microbusinesses has actually increased, according to recent research by The Enterprise Center at Salem State College.

The study found that proprietor employment grew at a rate seven times faster than that of wage- and salary-employment from 2002 to 2006, the latest years for which the data was available.

Meanwhile, the number of American businesses rose 14.2 percent in that time period, compared to a 5.6 percent increase in wage- and salary-employment.

Sole proprietors grew 17.7 percent, while microbusinesses grew 15.6 percent.

"The findings signal a dramatic change in how America works," said Christine Sullivan, executive director of The Enterprise Center.

Experts say the data since 2006 will likely show the same trend, because recessions tend to push many laid off workers into self-employment or startup companies.

This trend can be seen in the latest Kauffman Index data, which found that entrepreneurial activity has increased slightly in the past year. Approximately 0.32 percent of the adult population created a new business each month in 2008, according to the Index.




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