A study by the Kauffman Foundation shows that despite the deep recession, business startups in 2009 reached their highest level in 14 years.
The Kauffman Index of Entrepreneurial Activity says that last year, entrepreneurs started 550,000 new businesses each month in the U.S., representing a 4 percent increase over 2008. Last year also marked the second straight year that the index showed an increase in new business creation.
“Because entrepreneurs drive the economy, the growth in 2009 business startups is encouraging and hopefully points to a hopeful trend in terms of our economic recovery,” said Carl Schramm, president and CEO of the Kauffman Foundation.
The index also found that while Western states showed much higher business growth than other parts of the country, the strongest numbers nationwide were found in Oklahoma and Missouri.
Entrepreneur.com reports that two new tax small business tax breaks passed by Congress should continue to aid new business incorporation rates. The Patient Protection and Affordable Care Act offers employers up to a 35 percent tax credit for providing healthcare to employees, while the HIRE Act helps pay social security taxes for new workers who have been unemployed for long periods of time.
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