LOS ANGELES, July 11, 2011 /PRNewswire/ — According to new data released by the Organization for Economic Co-Operation and Development (OECD), the US remains a very supportive environment for small businesses, though high failure rates represent a lasting concern.
The report, Entrepreneurship At A Glance 2011, is an annual publication by the OECD. It chronicles the state of entrepreneurship in the various OECD countries through important key indicators. The US fared highly in small business creation, especially in construction, retail and professional services. Support for entrepreneurs was also evident, with the US ranked fourth in terms of administrative ease of starting a business. Financially, venture capital funding in the US totals 0.08% of GDP, which is second only to Israel.
However, despite the favorable climate for small business growth, bankruptcy rates continue to cast a pall over the sector. Domestic rates of business failure peaked during the financial crisis and have hardly dropped since. They remain at almost triple that of the UK, France, and the Netherlands.
“Business collapse is a real and serious danger for small business owners,” said small business expert Phil Holland, founder of My Own Business, Inc. “The reality is that start-ups usually only get one chance to fail and too often will make avoidable mistakes caused by lack of appropriate training and experience before starting. For example, first working for someone else in the same business and gaining accounting and cash flow skills can avoid many pitfalls once in business.”
The high rate of business failure has not dented the opinions of Americans regarding entrepreneurship. Over 73% of the population surveyed had a favorable image of entrepreneurs. Phil agrees. “Going forward, small business will be a very important mainstay of the American economy. We believe that businesses can still thrive with the right preparation and support. That’s a service we try to provide with our free business courses. Every day we see more and more people really getting serious about running their business, and in the end that’s just the boost our economy needs.”
For now, the ongoing support afforded to small business owners by the state and private sources such as My Own Business leaves experts cautiously optimistic.
About My Own Business, Inc
My Own Business, Inc (MOBI) is a leading provider of free business education to small business owners. We exist to support the vital social and economic contributions of small businesses by nurturing entrepreneurship and helping individuals build their own business. Online at www.myownbusiness.org
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