---
title: "TIME: Small Business Entrepreneurship is on the Decline"
url: https://burnaze.com/article/95f953d6-5bc0-4bcc-8547-5bc754a35b17
source: "1851 Franchise"
original_url: https://1851franchise.com/time-small-business-entrepreneurship-is-on-the-decline-5281
category: "General"
published: 2016-07-21T14:09:00.000Z
modified: 2026-11-01T04:15:08.181Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/6aa3d4f48706db18c395eb5dcfb887b42737160721084411.jpg
---

# TIME: Small Business Entrepreneurship is on the Decline

**TL;DR:** Total entrepreneurial activity in the U.S. fell to 12% in 2015, from 14% in 2014, according to a report by Babson College. The drop reverses upward growth in small business activity during the previous four years.

*originally published in 1851 Franchise on 2016-07-21. [Read the original](https://1851franchise.com/time-small-business-entrepreneurship-is-on-the-decline-5281).*

## Story

Total entrepreneurial activity in the U.S.—measured by the number of people starting and operating new businesses—fell to 12% in 2015, from 14% in 2014, according to a report released Tuesday by Babson College. The drop reverses upward growth in small business activity during the previous four years.

The findings could indicate that employees are satisfied with their jobs and unwilling to strike out on their own. But the research could also show a lack of confidence in the small business environment in the wake of the recession, Babson professor Donna Kelley told CNBC. The Small Business Optimism Index, a metric from the National Federation of Independent Business, has remained below its 42-year average since the recession.

“If the general environment is saying that there are few opportunities and the entrepreneurship rate goes down, that all suggests less optimism about entrepreneurship right now,” Kelley said.

## Entities

- 1851 Franchise (publication)
- General (sector)
- entrepreneurship (topic)
- small business (topic)
- economic trends (topic)

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Originally reported by 1851 Franchise (https://1851franchise.com/time-small-business-entrepreneurship-is-on-the-decline-5281). Summarized by Burnaze (https://burnaze.com/article/95f953d6-5bc0-4bcc-8547-5bc754a35b17).