Entrepreneur News

START-UPS FEWER, GRAYER

While the number of U.S. start-ups dropped last year from 22 million to 18 million, the ranks of entrepreneurs over 50 are growing. According to a study by the American Association of Retired People, "Self- Employment and the 50+ Population," 16.4 percent of Americans over 50 were selfemployed, compared with 10.2 percent of the overall workforce.

In contrast, there were fewer Americans involved in start-ups or "young" companies (in business less than three years) last year, found a study from the Entrepreneurship Research Institute at Florida International University. While about 18 million Americans were involved in new or earlystage companies, that figure was down from 22 million in 2003. The greatest decline was among the start-ups, according to the study's author, Paul D. Reynolds, Institute director.

START-UP INCUBATORS GO VIRTUAL

New companies needing an array of support services used to have to share office space to get access to legal, accounting, sales and even secretarial services. After the dot-com bubble burst, many incubators went out of business. But some 1,100 remain nationwide, and many have adopted a new, virtual model, according to a recent article in Inc.

Businesses may still benefit from expert advice but work remotely or onsite near their inventory. The National Business Incubation Association (www.nbia.com) lists six on-site incubators in Massachusetts, including the Martin Luther King, Jr. Business Center and Massachusetts Biomedical Initiatives (MBI) in Worcester. Even without the close proximity to other start-ups, Inc. points out that joining a virtual incubator offers greater opportunities to meet potential investors.

For some industries, particularly the life sciences, however, the virtual set up doesn't make sense. A collection of wet labs, such as the MBI incubator, offers greater cost savings than solo scientific endeavors. And the culture created by having other like-minded entrepreneurs nearby cannot be replicated in a virtual environment. But if a business does not need specialized equipment but could use the services of a variety of professionals, a virtual incubator may be a good place to begin.