U.S. small businesses employ nearly fifty percent of the private sector workforce. Given the sector's hesitancy to hire in significant numbers, coupled with low but gradually improving confidence rates, many analysts have singled out small businesses as the key to economic recovery.
Still, unemployment remains high (9.8 percent nationally), and several economists including Federal Reserve Chairman Ben Bernanke have warned that it may take several years before this figure returns to a pre-recession level.
However, a growing number of the unemployed who are fed up with their inability to find a job have begun launching their own companies as a means to return to work.
The response has been welcomed among analysts who predict that these entrepreneurs will create new jobs for others and, hopefully, lower unemployment.
"With the majority of jobs created by small businesses (and all businesses start small), you may find that you and several colleagues can come together to create financial independence for yourselves - and jobs for others," writes Lea Strickland in The Street. "Even in tough economic times, new businesses and smart businesspeople can succeed, grow and thrive. It takes planning, realism and hard work."
As for entrepreneurs looking to incorporate in New York City, California, Texas, Massachusetts or other entrepreneurial hubs, they may take advantage of unemployment rates that are expected to remain high over the next few years.
Tags : formation, incorporation news, small business management
Posted: Dec 29th, 2010