Entrepreneurship in Nebraska: Economic Indicators

1. Entrepreneurship in Nebraska:Economic Indicators Eric ThompsonUniversity of Nebraska-Lincoln

2. 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

3. Community College Regions

4. 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

5. 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.

6. 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?

7. Employer Establishment Counts Per Person 2005

8. Annual Growth in Employer Establishments Counts Per Person 1994-2005

9. 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.

10. Annual Growth in Business Counts Per Person 1994-2003

11. Annual Growth in Business Counts Per Person 1994-2003 by Type of Business

12. Firm Births Per Person 2002-2004

13. 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.

14. Real Income Per Non-Farm Proprietor 2004

15. Annual Growth in Real Income Per Non-Farm Proprietor 1990-2004

16. Relative Per Capita Income 1990-2005Non-Farm Income

17. Income from WealthReal Per Capita Income from Dividends, Interest and Rent 1990 to 2005

18. 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.

19. Employer Establishments Per Person 2005by Community College District

20. Annual Growth in Employer Establishment Counts Per Person 1990-2005by Community College District

21. Real Income Per Non-Farm Proprietor 1990-2004 by Community College District

22. Relative Non-Farm Personal Income 1990-2003by Community College District

23. Real Dividend, Interest, and Rent Income Per Person 1990-2004 by Community College District

24. 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.

25. 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.