Small-business advice: A myth about start-ups, debunked

Dear Karen: Is it true that more businesses are founded during recessions?

Answer: Actually, firm formation rates don’t fluctuate much in booms or busts, said Dane Stangler, research manager at the Ewing Marion Kauffman Foundation. “Our research shows that there is very little variance in formation or survival rates of businesses,” Stangler said.

“The late ‘90s, when we had this very strong narrative about start-up businesses, has some of the flattest numbers of overall company formation” for the whole century, he said.

That may have changed during the most recent recession, however. A study released this month showed that new U.S. entrepreneurial activity fell significantly, from 10.6% in 2005 to 6.9% in 2009. The study, conducted by Babson College and Baruch College, also showed a 26% decline in established businesses during the same time period.

• Marketing to frequent fliers

Dear Karen: How can I market my travel product to people who use frequent flier miles?

Answer: SkyMall is the largest of a handful of in-flight catalogs that reach hundreds of millions of travelers annually. “SkyMall carries about 2,000 products from many retailers, including Hammacher Schlemmer and the Wine Enthusiast,” said Tim Cohn, president of Advanced Marketing Consultants.

Download a merchant media kit or invention submission form at the SkyMall website. The catalog looks for products in home and outdoor living, toys and collectibles, electronics, health and wellness, pets, travel and hardware categories, Cohn said.

Small-business questions? E-mail Karen at smallbiz@latimes.com