San Francisco, CA, September 01, 2017 –(PR.com)– The founders of S7 Group, a private investment company based in California, Adam Radly and Bob Bates have launched a new index designed to track entrepreneurial activity in the United States.
The Radly Bates Index (“RBI”) measures the percentage of the active workforce that is self employed. The Index will updated monthly at the same time as the monthly jobs data is released and is based on data from the US Bureau Of Labor Statistics.
In 2017, self employment peaked at 9.58% in February and has been declining ever since. In July there were 14.9 million self employed Americans and 160.5 million employed Americans resulting in a self employed percentage of 9.31% for July, hence the RBI for July is 9.31.
Adam Radly said “The monthly jobs data attract a lot of attention for obvious reasons but jobs are created a by businesses. In order for jobs to created businesses need to grow or increase in number or both. The Index allows us to measure the 'entrepreneurial sentiment' among people that have a choice between employment and self employment.”
Adam Radly said “I think we can interpret the percentage of Americans that want to be self employed as an indicator of 'small business confidence.' People won’t leave their secure jobs to risk everything in a startup unless they have confidence in the economy and the specific circumstances of their industry.”
The RBI will also provide a mechanism for monitoring self employment rates as we transition from regular work into the new “gig economy.” Theoretically, the gig economy should result in an increase in self employment rates but the dip in self employment during 2017 (and a healthy economy) indicates that there must be more people than ever that are working a regular job while earning extra income from gigs on the side. “As an organization that invests capital and raises capital for small business, the thing we are most interested in, is whether the gigs on the side grow into real businesses that employ other people and need growth capital,” said Bob Bates.
The failure rate of new businesses has always been very high. There would obviously be many more jobs created if the failure rate was reduced. Adam Radly said “This failure rate is so important to the economy that there should be a government agency whose sole focus is small business success. Some people will point to the SBA but the SBA is mostly focused on facilitating debt funding from banks for a limited cross section of small businesses.”
The RBI will be updated in September when the August jobs data is released.
About Radly Bates Index
The Radly Bates Index (“RBI”) is part of the S7 Group, a private investment company that invests in small businesses directly and also raises capital for small businesses. More information about the RBI can be found at https://radlybatesindex.com/ and more information about S7 Group can be found www.s7group.com. Adam Radly and Bob Bates can be available for comment through this email address: [email protected].
Contact Information:
S7 Group
Bob Bates
778-371-3479
Contact via Email
s7group.com
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