Entrepreneurship in Nebraska: Economic Indicators. Eric Thompson University of Nebraska-Lincoln. Comparisons. There has been tremendous growth in entrepreneurship in the United States economy in recent years We compare Nebraska to the nation Has Nebraska fully participated?
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Entrepreneurship in Nebraska:Economic Indicators Eric ThompsonUniversity of Nebraska-Lincoln
Comparisons • There has been tremendous growth in entrepreneurship in the United States economy in recent years • We compare Nebraska to the nation • Has Nebraska fully participated? • We also compare growth in the 6 community college regions of Nebraska
Tracking Entrepreneurship in Nebraska • We tracked the progress of entrepreneurship in Nebraska over the two decades by measuring: • Growth in business counts • New firm formation rates • Income of entrepreneurs • Income creation
Comparison of NE with US Business Counts • Net growth in the number of businesses in Nebraska lags U.S. by 0.5% to 1.0% per year. • Nebraska population is also growing more slowly. • These findings are related. Lower rates of business formation is one factor limiting population growth in the state.
Comparison of NE with US Business Counts • However, there are a number of factors that affect population growth. • And, lower population growth also may limit growth in business counts. • It is useful to look at per person growth in business – to what extent are Nebraskan’s generating businesses?
Comparison of NE with US Business Counts • The growth of employer establishments per person is similar in Nebraska and United States. • The picture is different when examining all firms, including proprietor’s without employees.
Annual Growth in Business Counts Per Person 1994-2003 by Type of Business
Comparison of NE with US Income Creation • Faster growth in income per proprietor and revenue per business in Nebraska. • Faster growth in per capita income and income from wealth in Nebraska.
Income from WealthReal Per Capita Income from Dividends, Interest and Rent 1990 to 2005
Comparison among 6 Community College Districts • Compare the number of employer establishments per person in the 6 districts, and growth in employer establishments. • Compare growth in real income per proprietor, and per capita income.
Annual Growth in Employer Establishment Counts Per Person 1990-2005by Community College District
Real Income Per Non-Farm Proprietor 1990-2004 by Community College District
Relative Non-Farm Personal Income 1990-2003by Community College District
Real Dividend, Interest, and Rent Income Per Person 1990-2004 by Community College District
Conclusion • Many indicators suggest an average level of entrepreneurship in Nebraska. • Nebraska and the United States have a similar number of businesses per person. • The growth rate among employer establishments is similar in Nebraska and the nation on a per person basis. • Firm birth rates are slightly higher in Nebraska than nationwide. • Income per proprietor is growing more quickly in Nebraska than nationwide, as is revenue per firm, and per capita income.
Conclusion • But many indicators suggest that entrepreneurial success in the state is concentrated in the Omaha area. • While the number of employer establishments per person grew strongly in all 6 Community College Districts of Nebraska, the average income of proprietors was flat or declining in 5 of these districts. • Omaha was the only region with rapidly growing average income per proprietor.