A report by the Kauffman Foundation is out that indicates an increase in entrepreneurial business starts in 2008 of .02% over 2007 according to The Policy Dialog on Entrpreneurship blog. My guess is that a lot of the increase is due to entrepreneurs of necessity–people who are starting businesses because of layoffs or downsizings. The thing that confuses me a little is the breakdown by state. Some of the states with the highest job losses are among the lowest in new business starts. The only thing I can think of is that they’re not thinking about anything outside of their local economy. What people need to realize now is that because of the Internet the world is a very small place.