Although the U.S. continues to rank high in entrepreneurial activity, the new GEM study suggests a portentous weakeningin the nation's normally robust entrepreneurial engine.

According to the "Global Entrepreneurship Monitor (GEM) 2006-2007 National Entrepreneurial Assessment for the United States of America," conducted by Babson College and Baruch College, while U.S. entrepreneurship was 50% higher than the average of all other high-income (GEM) countries and equals the rate in low-and middle-income (GEM) countries, there was a large decline in entrepreneurial activity from 12.4% in 2005 to just 9.6% in 2007.

Additionally, the U.S. showed a greater decline in growth among seven key industries in 2007 than in the recession of 2001, suggesting a precursor to a deeper recession in 2008 and/or 2009.

For the first time, GEM has reportedon U.S. minority business owners and their families (through the Baruch College Minority Business Owners Survey (NMBOS)) from four groups: Korean Americans, Mexican Americans, African Americans, and a White American control group. It is clear that entrepreneurship offers immigrants and minorities a valid means to thrive in the U.S.

GEM found that minorities exhibit higher rates of entrepreneurship than whites and exhibit the same demographic and motivation patterns as white entrepreneurs in terms of types of businesses, growth expectation, education, and gender.

White Americans and Mexican Americans both exhibited fewer percentages of their entrepreneurs in the lower-income groups, and a higher percentage of their entrepreneurs in the higher-income groups than did African Americans and Korean Americans. This was especially true for established businesses compared to start-up businesses (less than 42 months old).