Entrepreneurial and Small Business Operations Commons^™

State Entrepreneurship Index, Eric Thompson, William Walstad

Business in Nebraska

STATE ENTREPRENEURSHIP INDEX

Unemployment rates and job growth are popular measures for state economies. However, these trends may differ from the state’s performance in core measures of underlying economic strength such as entrepreneurship, net migration and capital formation. Given this, the University of Nebraska - Lincoln Bureau of Business Research seeks to track these core economic measures in Nebraska and in all U.S. states.

The State Entrepreneurship Index is one effort to track these core trends. Specifically, the index is used to track entrepreneurship in all 50 states. The index was initially developed by Eric C. Thompson and William B. …

Real Impact Of Migration, Eric Thompson, Ziwen Zhang, Trung Pham, Elliot Campbell

Business in Nebraska

REAL IMPACT OF MIGRATION

Introduction

In response to economic shocks, such as the Great Recession, people seek out opportunities to return to normalcy. One way is to relocate to a new area. This study examines the people who move from one state to another, seeking better opportunities, and in the process, aiding to rebuild the U.S. economy.

This study does not simply count the number of mi-grants, it also examines the attributes of migrants to determine the human capital, or productive skills, they possess and are willing to provide to the market. Each person, due to characteristics such as education …

Sustained Growth, Eric Thompson, University Of Nebraska-Lincoln

Business in Nebraska

U.S. Macroeconomic Outlook

he U.S. economy remains on a path of sustained, moderate economic recovery. Growth persists despite a stalled U.S. housing sector, recession in Europe and slowing growth in China and much of the developing world. These factors undoubtedly have slowed growth in the U.S. economy, and are a continuing source of uncertainty, but U.S. economic growth has continued just the same. The credit must go to a flexible and agile U.S. private sector. Since the financial crisis began, businesses have continued to improve their balance sheets, invest in productivity, and seek out opportunities in growing sectors of the …

Slow Growth And Uncertainty, Eric Thompson, University Of Nebraska-Lincoln

Business in Nebraska

SLOW GROWTH AND UNCERTAINTY

U.S. Macroeconomic Outlook

A lingering financial crisis, economic shocks, and economic policy have combined to derail the self-sustaining recovery in the United State economy. Growth has slowed to a crawl and the risk of another recession runs high. What has happened? To begin with, the Great Recession of 2008 and 2009 continues to impact the construction sector and state and local government employment. New housing construction remains depressed, causing construction employment to drift downward. With tax revenues below pre-recession levels, state and local government employment continues a steady decline. The market also continues to face unexpected …

Entrepreneurship In Nebraska, Van Tran, Eric Thompson, William Walstad

Business in Nebraska

ENTREPRENEURSHIP IN NEBRASKA

Recent trends in economic indicators such as unemployment rates and job growth clearly favor Nebraska. However, these trends may differ from the state’s performance in core measures of economic strength such as entrepreneurship, net migration and capital formation. Given this, the University of Nebraska - Lincoln Bureau of Business Research seeks to track these core economic measures in Nebraska and in all U.S. states.

The state entrepreneurship index is one effort to track these core trends. Specifically, the index is used to track entrepreneurship in Nebraska and compare with the other forty-nine states.

The index was developed …

The Tentative Recovery Strengthens, Eric Thompson, University Of Nebraska-Lincoln

Business in Nebraska

U.S. Macroeconomic Outlook

The U.S. economy has transitioned to a self-sustaining recovery fueled by the private sector. Steady improvement in consumer spending and strong increases in business investment has fueled solid growth in gross domestic product and rapid growth in industrial output. Such a strong industrial economy is typically a bellwether for solid, sustained economic growth. Another reason for optimism is that much of the excess has been wrung out of the U.S. economy. Household spending is now better in-line within income, home prices are at sustainable rather than elevated levels, and balance sheets have improved for many businesses. In …

A Tentative Recovery, Eric Thompson, University Of Nebraska-Lincoln

Business in Nebraska

U.S. Macroeconomic Outlook

The U.S. economy is persevering in its transition to a self-sustaining recovery fueled by private consumer spending and business investment. But, that transition is tenuous, with factors both encouraging and discouraging growth. Among factors encouraging growth, consumer spending and business investment continue to expand, supported by rising wage income and profits. As is typical in an economic recovery, profits have rebounded as businesses which cut costs during the recession are benefiting from rising revenue. The labor market also has begun to recover. While gains have been limited, the U.S. economy has added private sector jobs over the …

Entrepreneurship In Nebraska, Steve Carlson, Eric Thompson, Hanna Hartman, William Walstad

Business in Nebraska

Introduction

Entrepreneurship can be an important process in stimulating economic growth. While it is not the sole determinant of economic prosperity, it can be a way for a state such as Nebraska to outperform other states. In Entrepreneurship in Nebraska: Conditions, Attitudes, and Actions, Eric C. Thompson and William B. Walstad developed an entrepreneurship index that acts as a benchmark to compare Nebraska with the other forty-nine states. The index in their publication was constructed using 2005 data. The latest data available needed to calculate this index now exists for 2008. In this report, we use the method developed …

Return To Growth, Eric Thompson, University Of Nebraska-Lincoln

Business in Nebraska

U.S. Macroeconomic Outlook

After 18 months of decline, the United States economy returned to growth in mid-2009. Growth was tepid at first, with U.S. gross domestic product rising by just 2.2% in the 3^rd quarter. But, growth was much more rapid in the 4^th quarter, portending a solid recovery in 2010 and 2011. Economic expansion will be broad-based, with both household consumption and business investment rising, and employment increasing in most industries. The reasons for recovery are typical of other recoveries. Initially, the recovery is powered pent-up consumer demand among households who have retained spending power. Later, there …

The Great "Reset", Eric Thompson, University Of Nebraska-Lincoln

Business in Nebraska

THE GREAT “RESET”

U.S. Macroeconomic Outlook

Recent consumer spending, home and retail sales, and industrial production reports suggest that the economy may be nearing a turning point, and that the recession will end later this year. But, even if this happens, the U.S. economy will still face major challenges. The economy has dug itself a deep hole, with very high levels of unemployment. Further, there are reasons to expect an anemic and perhaps even unsteady recovery, rather than rapid expansion that often occurs at the end of a recession. First, consumption is not likely to return to pre-recession levels in …

Producer Services: An Engine For Job Growth, Steve Carlson, Hanna Hartman, Eric Thompson

Business in Nebraska

Introduction

Producer services providers are firms that sell services primarily to the business community rather than to individuals and households. Accounting firms, consultants, and computer design services are prominent examples of producer services businesses. Given their importance as suppliers to the broader business community, producer services are a critical segment of the economy. Many producer services industries also are a rapidly growing and pay high wages. The producer services sectors in fact are the principal source of high wage job growth in our evolving service economy.

For all of these reasons, this article highlights the performance of the producer services …

Recession Comes To The Plains, Eric Thompson, University Of Nebraska-Lincoln

Business in Nebraska

U.S. Macroeconomic Outlook

Like clockwork, just a few weeks after the November Presidential election, the National Bureau of Economic Indicators declared the U.S. economy in recession. This was not news, of course. It had been evident by that time that the U.S. economy had entered recession. Instead, the major news of the last 6 months is that the U.S. recession has entered a second, and more menacing, phase. This “second act” of the recession began in September, with the upheaval on Wall Street and the freezing of global credit markets. At that time, our national housing recession morphed into a …

Brain Drain In Nebraska: What Do The Data Show?, Steve Carlson, Hanna Hartman, Eric Thompson

Business in Nebraska

Brain Drain in Nebraska: What do the data show?

Introduction

Nebraska is a growing state, but it is a slowly growing state. Over the last decade, population growth in Nebraska, at 0.6% per year, has lagged the national average rate of 1.0%. This gap in growth rates is large in real terms. Given a current population of approximately 1.8 million persons, Nebraska would grow by approximately 18,000 persons per year if it grew at the national growth rate of 1.0% per year. Instead, the state only adds about 11,000 persons per year. A lower growth rate results in a loss …

A Long Spell Of Uncertainity, John Austin, Chris Decker, Tom Doering, Ernie Goss, Bruce Johnson, Lisa Johnson, Ken Lemke, Franz Schwarz, Scott Strain, Eric Thompson, Keith Turner

Business in Nebraska

We find ourselves in a period of sustained economic uncertainty. Today, like 6 months ago, the U.S. economy is on the brink of a recession. Weakness in lending activity, coupled with weakness in the housing sector and related manufacturing industries has stymied economic growth since late 2007. At times, recession seems imminent. But, the official measures, such as quarterly gross domestic product, do not clearly signal that the economy is contracting. Further, prices are rising rapidly for food and energy. That is the uncertainty. Will 2008 be remembered as a recession year, or as a period of disappointing but slow …

Non-Farm Proprietors And The Nebraska Economy: 1997-2006, Randy Cantrell

Business in Nebraska

Non-farm proprietors are of growing importance in the Nebraska economy. This paper utilizes recently released data from the U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) to further explore this important class of workers, and to identify trends in their distribution and impact across Nebraska’s 93 counties. These data demonstrate that growth in non-farm proprietor jobs has not been matched by growth in income for those jobs, and that the discrepancy between jobs and income is most pronounced in rural portions of the state.

Risk And Recovery, John Austin, Chris Decker, Tom Doering, Ernie Gross, Bruce Johnson, Lisa Johnson, Ken Lemke, Franz Schwarz, Scott Strain, Eric Thompson, Keith Turner

Business in Nebraska

The crisis in the housing and financial sectors has led to a dramatic slowdown in U.S. economic growth. Fourth quarter GDP growth and job growth are expected to be anemic and the economy may fall into recession in 2008. Indeed, several of the dozen members of the Nebraska Business Forecast Council do believe that the U.S. economy will likely slip into recession during 2008. However, the overall consensus of the Council is that the U.S. economy will avoid a recession. Economic growth will be slow in the first three quarters of 2008 before recovering in late 2008 and 2009.

The …

Tourists And Travelers Generate Dollars – And More: Results From A Survey Of Visitors To Western Nebraska, Randy Cantrell, Cheryl Burkhart-Kriesel

Business in Nebraska

According to statistics compiled by the Nebraska Division of Travel and Tourism (NDOTT), travelers spent over $3-billion in Nebraska in 2006, and that income supported over 42,000 Nebraska jobs and numerous new Nebraska businesses. In addition to these economic impacts, the potential benefits of tourism as a development strategy include contributions to the tax base, development of community facilities, increased pride in communities and cultures, expanded civic involvement, conservation of shared resources and infrastructure improvements.

Nebraska has the potential to expand its tourist economy. Pine and Gilmore (1999) have written of the emergence of an important "experience economy" in which …

A Soft Landing And A Long Layover, John Austin, Chris Decker, Tom Doering, Ernie Goss, Philip Baker, Bruce Johnson, Lisa Johnson, Ken Lemke, Franz Schwarz, Scott Strain, Eric Thompson

Business in Nebraska

The U.S. economy achieved a soft landing in 2006. This was a desirable outcome. The economy needed a break from its rapid, and potentially inflationary, growth in 2004 and 2005, before taking off again. But, that new flight has been delayed. The aggregate economy has remained mired in slow growth in the first half of 2007. Pockets of the economy, such as the labor market, have been strong, but a weak housing sector has limited overall growth. Further, signs point to one or two more quarters of weaker growth, before the economy is able to take off again.

This outcome …

Nebraska’S Micropolitan Statistical Areas: A Growing Piece Of A Shrinking Pie, Randolph Cantrell

Business in Nebraska

They have been called “urban islands in a shortgrass sea” (Popper and Popper, 1986) and “middle places” (Swanson, 2007). They are the small urban centers that dot the Great Plains and are home to an important share of the region’s non-metropolitan population and economic activity. Compared to the much larger metropolitan centers such as Omaha and Lincoln, they may appear to be minor players in the state’s social and economic landscape—but that would underestimate their role. Individually they anchor the regional “pillars of growth” identified by Thompson (Thompson et al., 2007), and collectively they play a determining role in the …

A Soft Landing, Steady Growth, And Accelerating Farm Income, John Austin, Chris Decker, Tom Doering, Ernie Gross, Nick Hernandez, Bruce Johnson, Ken Lemke, Frank Schwarz, Scott Strain, Eric Thompson, Keith Turner

Business in Nebraska

After years of accelerating growth, the U.S. economy achieved a soft landing in 2006. The rate of economic growth remained positive but slowed sufficiently to reduce inflation pressures and the need for further interest rate increases. At the same time the economy remained strong enough to continue the current expansion which has been in place since late 2001. Such a soft landing is vital because it should allow the economy to continue to expand for years to come, but with moderate inflation.

The housing sector played an important role in the U.S. economy’s recent slowdown. Housing prices and con-struction activity …

Labor Force Implications Of Population Decline In Non-Metropolitan Nebraska, Randy Cantrell

Business in Nebraska

The most recent release of population estimates from the Census Bureau indicates that 70 Nebraska counties lost population between 2000 and 2005. These counties included 52 of the 53 that recorded population losses between 1990 and 2000, joined by 18 counties that had grown through the 1990s.

While those counties estimated to have lost population over the last five years included three of 11 micropolitan core counties, eight of ten outlying microplitan counties, and even one of seven outlying metropolitan counties, the great majority were nonmetropolitan. Of the 43 Nebraska counties containing no community of 2,500 or more residents, 42 …

Manufacturing Rebounds, John Austin, Chris Decker, Tom Doering, Ernie Goss, Nick Hernandez, Bruce Johnson, Ken Lemke, Donis Petersan, Franz Schwarz, Eric Thompson, Keith Turner

Business in Nebraska

National economic conditions will continue to favor growth over the next three years, including sustained increases in manufacturing employment. Higher energy prices, particularly for oil, gasoline, and natural gas, will impact the economy, but probably only will moderate economic growth rather than cause a significant slowdown.

After rapid growth in 2004 and 2005, growth in real gross domestic product is expected to moderate in 2006-2008, due to higher long-term interest rates as well as higher energy prices. Real gross domestic product will grow 3 percent in 2006 and fall to 2.5 percent growth in later years. The housing market will …

The Recovery Is Sustained: The Nebraska Business Forecast Council, Randy Cantrell

Business in Nebraska

In September and October of this year, Hurricanes Katrina and Rita combined with an already-stretched world oil market to generate a spike in energy prices throughout the United States. The price spike naturally generated concern for the economy. Most recent recessions in the U.S. economy have been preceded by peaks in oil prices. Did the energy price spikes following Katrina and Rita derail the quickly-growing U.S. economy? The early evidence, and the economic outlook, suggest that the answer is no.

Despite the hurricanes, third quarter GDP growth continued to be very strong, exceeding 4%. Further, strong job growth returned to …

Business Priorities For Reducing The Cost Of Doing Business In Nebraska: Recent Results And Industry Differences, Eric Thompson, Cory Buland

Business in Nebraska

The cost of doing business in Nebraska influences many Nebraska proprietorships, partnerships, and corporations operating throughout the economy. Four times a year, the Bureau of Business Research surveys Nebraska businesses about factors that influence the cost of doing business in the state. This report presents the results of a survey sent to 500 Nebraska businesses during July and August of 2005.

The survey presents businesses with a list of 19 cost factors ranging from market-driven matters (such as the cost of supplies and raw materials, labor costs, or utility costs) to factors more directly tied to federal, state, and local …

Continued Growth In Nebraska, Saeed Ahmad, John Austin, Tom Doering, Ernie Goss, Bruce Johnson, Donis Petersan, Eric Thompson, Keith Turner

Business in Nebraska

National economic conditions will continue to favor growth over the next three years. Increased business investment will combine with rising industrial production, expanding exports, and moderate increases in consumer spending to grow the economy. The rate of inflation is expected to increase as well.

The rate of real (inflation-adjusted) growth will moderate compared to strong economic growth during 2004. Real gross domestic product will grow 3 percent to 3.5 percent over the next three years. High oil prices will remain a drain on the economy, siphoning spending from domestically produced goods and services. Fuel prices are expected to remain at …

Business Priorities For Reducing The Cost Of Doing Business In Nebraska, Eric Thompson, Jyothsna Safnath

Business in Nebraska

The cost of doing business in Nebraska affects all residents of the state. It directly influences the profitability and prospects of tens of thousands of Nebraska proprietorships, partnerships, and corporations. The indirect effects may be even more far-reaching, affecting both the cost of living and the quality of life in the state. Business costs influence the prices that businesses must charge for providing goods and services. These costs even affect whether certain retail and service businesses survive in small and mid-size Nebraska communities. The cost of doing business also may influence the size of the Nebraska economy. Many Nebraska manufacturers, …

Sustained Growth In Nebraska, Saeed Ahmad, John Austin, Tom Doering, Ernie Goss, Bruce Johnson, Mike Lundeen, Donis Petersan, Franz Schwarz, Eric Thompson, Keith Turner

Business in Nebraska

National Macroeconomic conditions are favorable for future expansion of income, employment, and revenue in Nebraska. In particular, the U.S. economy is now in the heart of an expansion expected to persist over the three year forecast period. The principal engine of growth will be a sustained expansion in private sector investment and consumption demand.

However, the rate of growth in the national economy likely will be moderate rather than rapid. At least three factors will act to moderate growth. The first is higher energy prices. Rapid growth in global demand is expected to keep prices for oil and natural gas …

Business In Nebraska #294 - March 1969, Dorothy Switzer, R. L. Busboom, E. S. Wallace

Business in Nebraska

Extent of Corporation Farming in Nebraska (Dorothy Switzer)

Concern has been expressed in many quarters over the apparent increase in the number of nonfarm corporations that are buying land and initiating new farming enterprises in Nebraska. It has become important, therefore, to know the facts about the number of these corporations and the amount of farm land they are operating in the state. This information has recently been made available because Nebraska is one of 22 states included in a preliminary report summarizing a survey of corporate farming.

Reprints

State and Local Taxes in Nebraska (E. S. Wallace)

According to …

Business In Nebraska #292 - January 1969, Dorothy Switzer, R. L. Busboom

Business in Nebraska

Changing Patterns of Communities in the Midwest (Dorothy Switzer)

The regional concept of economic planning and development discussed in the December issue of Business in Nebraska was the subject also of a workshop conference on "Changing Patterns of People and Communities in the Midwest," held in Omaha last month. It is deemed appropriate to report here the most significant highlight of the conference because the panel presentations and subsequent discussions further developed several important apects of regional growth.

Business Summary (R. L. Busboom)

Both Physical Volume and Dollar Volume Indexes for Nebraska indicate that the October, 1968 level of business …

Business In Nebraska #293 - February 1969, Dorothy Switzer, R. L. Busboom

Business in Nebraska

The University and State Development: Centennial Retrospect and Second Century Prospect (Dorothy Switzer)

Business Summary (R. L. Busboom)

Both Physical Volume and Dollar Volume indexes indicate that Nebraska's November, 1968, level of business activity was notably above that of the same month last year. For both indicators, Nebraska's changes were at nearly the same rates as those of the U. S. On a month-to-month basis, however, Nebraska as well as the U. S. experienced Dollar and Physical Volume declines, from October, 1968, to November, 1968, that were more than seasonally expectable. Also, Nebraska's drop-off was more than that of the …