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Silicon Valley Entrepreneurship Rates

Green tech is being created by entrepreneurs...and California's Silicon Valley is an entrepreneurial leader, here's how and why.

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Silicon Valley’s entrepreneurship rate, as measured by the Kauffman Index of Entrepreneurial Activity, was consistently higher than the national rate during the dot com boom of the late 1990s, according to a study released by the Office of Advocacy of the U.S. Small Business Administration.

The study discovered that the entrepreneurship rate in Silicon Valley rose in the post-boom period relative to other regions. After controlling for factors such as education and native/non-native birth, the Silicon Valley rate remained high, lending credence to the idea that Silicon Valley has a special, unmeasured factor that drives entrepreneurship.

"Entrepreneurship in Silicon Valley during the Boom and Bust," written by Dr. Robert Fairlie of the University of California Santa Cruz with funding from the Office of Advocacy, examines the reasons for the rates of entrepreneurship in the boom and post-boom periods. A copy of this report can be obtained at http://www.sba.gov/advo/research/rs296tot.pdf, and the research summary at http://www.sba.gov/advo/research/rs296.pdf.

Should you need further information, please feel free to contact Victoria Williams at (202) 205-6533 or advocacy@sba.gov.

** To sign up for Advocacy updates via RSS feed, visit http://www.sba.gov/advo/rsslibrary.html. **

** In order to receive e-mail notices of Advocacy's news releases, monthly newsletter, small business research, statistics, and regulatory news visit http://web.sba.gov/list. **



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