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Business startup rate drops to 10.1 percent in U.S.

Slightly more than 10 percent of American adults are starting or running a new business, according to the 2006 Global Entrepreneurship Monitor.

That's down from 12.4 percent a year ago, but within the statistical margin of error, according to GEM researchers.

Peru, at 40.2 percent, has the highest percentage of adults engaged in early-stage entrepreneurial activity. Belgium ranks last at 2.7 percent.

In China, 16.7 percent of adults are starting or running new businesses, up from 13.7 percent a year ago. One-third of Chinese adults expect to start a business in the next three years.

In every country except the Philippines, men are more likely to start a business than women. However, the gender gap is most pronounced in high-income countries.

Individuals, ages 25 to 34, are the most likely to start new businesses; adults in the 55 to 64 age range are the least likely.

The annual GEM research project is directed by Babson College and the London Business School.

Meanwhile, the U.S. ranks No. 4 in the Heritage Foundation's latest Index of Economic Freedom, behind Hong Kong, Singapore and Australia. North Korea and Cuba are at the bottom of the rankings.

Countries are measured in 10 categories, ranging from business freedom to freedom from corruption. Nations that increase their economic freedom levels grow faster, according to the foundation.

Another survey, however, found that, for the first time in five years, European business leaders are more optimistic about their economies than U.S. business leaders are. Asian business owners are the most confident in the world, according to the Grant Thornton International survey of 7,200 business leaders in 32 countries.

For more, see www.gemconsortium.org, www.heritage.org or www.internationalbusinessreport.com.

Find tax forms at Business.gov

Businesses that need federal tax forms and guides can easily find them on Business.gov, the official business link to the U.S. government.

This help might be particularly useful this month, as employers prepare W-2s for their employees.

"January may be a stressful time for a business owner, and one of Business.gov's main goals is to ease the burden of federal compliance on businesses," says Steven Preston, who heads the Small Business Administration.

The SBA manages the Business.gov site.

For more information, see www.business.gov.

© 2007 New Mexico Business Weekly

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