T HE G ALLUP O RGANIZATION William Walstad University of Nebraska-Lincoln Entrepreneurship in Nebraska: Findings From a Gallup Survey

Copyright © 2006 William Walstad 2 Credits The Gallup Organization Krieger Family Foundation Jim Krieger & Glenn Phelps for leadership Walstad & Kourilsky studies for most survey items

Copyright © 2006 William Walstad 3 Sampling General Public  2,460 Nebraskans 18 years of age or older  +/- 2% sampling error for state results Business Owners  555 Nebraska business owners with 1 to 100 employees  +/- 4.2% sampling error for state results Survey conducted: Fall 2005

Copyright © 2006 William Walstad 4 Survey Topics 1. Interest in Entrepreneurship(5)* 2. Views of Small Business(3) 3. Reasons to Start a Business (4) 4. Challenges and Obstacles(2) 5. Entrepreneurial Knowledge (4) 6. Preparation and Education (5) 7. Role of Government (4) 8. Economic Development (4) *Number of items on topic

Copyright © 2006 William Walstad 5 Interest in Entrepreneurship

Copyright © 2006 William Walstad 6 Want to Start Own Business Total interest in entrepreneurship = 49% General Public (n = 2,460)

Copyright © 2006 William Walstad 7 Want to Start Own Business by Age Age General Public (n = 2,460)

Copyright © 2006 William Walstad 8 Age When Thought of Starting Own Business Business Owners (n=555)

Copyright © 2006 William Walstad 9 Number of Other Businesses Started Business Owners (n=555)

Copyright © 2006 William Walstad 10 Interest Findings Entrepreneurial interest is great. The pool of potential entrepreneurs is an untapped resource for Nebraska. Entrepreneurship begins early. Most of the general public business owners start thinking about it at a young age. Entrepreneurship is multiple process. Starting one business often leads to starting others. Entrepreneurship is viewed as a good career choice.

Copyright © 2006 William Walstad 11 Economic Development

Copyright © 2006 William Walstad 12 Years to Exit Business Business Owners (n=555)

Copyright © 2006 William Walstad 13 Who to Transfer Business to Business Owners (n=555)

Copyright © 2006 William Walstad 14 Development Findings There is a transition problem for business.  Most owners plan to exit the business in ten years.  Many owners plan to liquidate their business. Nebraskans generally give low ratings to the effectiveness of economic development in their communities.

Copyright © 2006 William Walstad 15 Role of Government

Copyright © 2006 William Walstad 16 Challenges to Starting a Business

Copyright © 2006 William Walstad 17 Government Regulation of Business

Copyright © 2006 William Walstad 18 Business Taxes

Copyright © 2006 William Walstad 19 Government Findings Business owners, more so than the general public, think there is too much government regulation and taxes. Both business owners and the general public think government should provide more tax incentives for people to start new businesses.

Copyright © 2006 William Walstad 20 Reasons to Start a Business

Copyright © 2006 William Walstad 21 Major Reasons to Start a Business *Yes to entrepreneurship

Copyright © 2006 William Walstad 22 Major Reasons Not to Start a Business General Public (n=1,244) “No” to entrepreneurship

Copyright © 2006 William Walstad 23 Reasons Findings The prime reason people become entrepreneurs is the need for independence, and not to make lots of money. After age, the prime reason people do not become entrepreneurs is they lack something, which in many cases can be changed with more education and preparation.

Copyright © 2006 William Walstad 24 Preparation and Education

Copyright © 2006 William Walstad 25 Importance for Starting a Business Business Owners (n=555) Numbers shown in percentages

Copyright © 2006 William Walstad 26 Importance of High School Factors for Starting a Business Business Owners (n=555)

Copyright © 2006 William Walstad 27 Importance of College Factors For Starting a Business Business Owners (n=368)

Copyright © 2006 William Walstad 28 Education Findings Work experience and education are prime factors for preparing people for entrepreneurship. Education, both in high school and college, are important factors for to entrepreneurship. The general public strong support more entrepreneurship education in the schools.

Copyright © 2006 William Walstad 29 Views of Small Business

Copyright © 2006 William Walstad 30 Contribution Business Owners Make to the Community General Public (n=2,460)

Copyright © 2006 William Walstad 31 Importance of Business Owners Contributing to a Community General Public (n=2,460)

Copyright © 2006 William Walstad 32 Views Findings Nebraskans have a positive opinion of small business: its economic opportunities, services, and philanthrophy. Nebraskans think it is important for successful business owners to contribute more to a community than just jobs or taxes.

Copyright © 2006 William Walstad 33 Conclusion There is great potential for expansion of entrepreneurship in Nebraska, especially among young adults. The state needs to find creative ways to tap that potential through education, incentives, and community support. Nebraska will benefit from the multiple contributions entrepreneurship makes to economic growth, jobs creation, and philanthropy.