1. T HE G ALLUP O RGANIZATION Eric Thompson University of Nebraska-Lincoln Entrepreneurship in Nebraska: Economic Indicators

2. Copyright © 2006 Eric Thompson 2 Entrepreneurship and the State Economy Entrepreneurs benefit the national economy by  developing new products, and  cutting costs Same factors mean that entrepreneurship increases the relative competitiveness and growth of local economies.

3. Copyright © 2006 Eric Thompson 3 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

4. Copyright © 2006 Eric Thompson 4 Community College Regions

5. Copyright © 2006 Eric Thompson 5 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

6. Copyright © 2006 Eric Thompson 6 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.

7. Copyright © 2006 Eric Thompson 7 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?

8. Copyright © 2006 Eric Thompson 8 Employer Establishment Counts Per Person 2005

9. Copyright © 2006 Eric Thompson 9 Annual Growth in Employer Establishments Counts Per Person 1994-2005

10. Copyright © 2006 Eric Thompson 10 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.

11. Copyright © 2006 Eric Thompson 11 Annual Growth in Business Counts Per Person 1994-2003

12. Copyright © 2006 Eric Thompson 12 Annual Growth in Business Counts Per Person 1994-2003 by Type of Business

13. Copyright © 2006 Eric Thompson 13 Firm Births Per Person 2002-2004

14. Copyright © 2006 Eric Thompson 14 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.

15. Copyright © 2006 Eric Thompson 15 Real Income Per Non-Farm Proprietor 2004

16. Copyright © 2006 Eric Thompson 16 Annual Growth in Real Income Per Non-Farm Proprietor 1990-2004

17. Copyright © 2006 Eric Thompson 17 Relative Per Capita Income 1990-2005 Non-Farm Income

18. Copyright © 2006 Eric Thompson 18 Income from Wealth Real Per Capita Income from Dividends, Interest and Rent 1990 to 2005

19. Copyright © 2006 Eric Thompson 19 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.

20. Copyright © 2006 Eric Thompson 20 Employer Establishments Per Person 2005 by Community College District

21. Copyright © 2006 Eric Thompson 21 Annual Growth in Employer Establishment Counts Per Person 1990-2005 by Community College District

22. Copyright © 2006 Eric Thompson 22 Real Income Per Non-Farm Proprietor 1990- 2004 by Community College District

23. Copyright © 2006 Eric Thompson 23 Relative Non-Farm Personal Income 1990-2003 by Community College District

24. Copyright © 2006 Eric Thompson 24 Real Dividend, Interest, and Rent Income Per Person 1990-2004 by Community College District

25. Copyright © 2006 Eric Thompson 25 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.

26. Copyright © 2006 Eric Thompson 26 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.