Start-up Fever, says Kauffman Foundation

The Kauffman Foundation and Babson College say that the number of adults considering creating a start-up rose last year:

The share of adults considering a start-up last year rose to 11.3% from 10.5% in 2002, say researchers at the Ewing Marion Kauffman Foundation in Kansas City, Mo., and Babson College near Boston. They surveyed 9,195 U.S. adults last year. Kauffman could not say whether last year’s gain was statistically significant.

Leaving aside the obvious question of statistical significance, there is another interpretation here, assuming the result stands. The fact that a larger number of people considered starting their own business could easily be a byproduct of the larger than normal number of people abandoning job searches and leaving the work force. It would be unsurprising to find that many of these people thought about starting companies. Most didn’t, of course.