Trends in the Market for Entrepreneurship Faculty from 1989-2010
Finkle, Todd A., Journal of Entrepreneurship Education
The purpose of this article is to educate schools and candidates about opportunities available for employment within the field of entrepreneurs hip in higher education. Data is provided from June, 1989 through June, 2010 on advertised candidates and positions throughout the world. The article examines the trends over the past 21 years with a primary focus on how the current economic crisis is affecting the job environment. The findings of this study show that the field has matured in regards to tenure track and non tenure track positions. Implications and recommended strategies are discussed for both candidates and school administrators.
The purpose of this article is to examine what affect the economic crisis from 2007-2009 has had on the job market for entrepreneurship faculty. More specifically, the research question that will be answered for this study will be: What affect has the economic crisis of 2007-2009 had on the job market (positions at Schools of Business and Management and candidates) in the field of entrepreneurship? The results of this study are critical to the future development and legitimacy of the field of entrepreneurship.
ECONOMIC CRISIS 2007-2009
The economic crisis of 2007-2009 will go down as the second worst economic catastrophe since the Great Depression in the 1930's. The Standard and Poor's 500 (S&P 500), one of the most popular indicators of the U.S. economy, had dropped to an intra-day low at 666.79 on March 6, 2009 from an intra-day high of 1576.09 on October 11, 2007 for a collapse of 57.7% (S&P 500 Index, 2009). World-wide stocks had decreased on average by approximately 60%. This was the second worst stock market crash in the history of the U.S. Not since the Great Depression had we seen a crash of this magnitude where the stock market dropped 89% from 1930 to 1932. During that period the stock market did not fully recover until 1954, 22 years later.
The economy was dealing with a triple whammy; a drop off in consumer spending, the housing bust, and the subprime financial disaster (over leveraged firms, which eventually lead to the collapse of Bear Stearns, the first Wall Street investment bank to fail since the Great Depression) (Finkle, forthcoming).
Other depressed global economic indicators included the collapse of the auto industry (bankruptcy of General Motors), the significant increase in unemployment rates, pay cuts, the elimination of pension and health care benefits, deflation, etc. Shanty towns had popped up all over the U.S.; something that the country had not seen since the Great Depression. Unemployment in the U.S. surpassed 9 percent in May, 2009 for the first time in more than 25 years, underscoring forecasts that the economy will be slow to pull out of the worst recession in half a century (Chandra, 2009).
People across the world were in total shock and disbelief. In the U.S., home values and retirement accounts were evaporating. The Case-Shiller index, an index of the average price of residential housing for the top 20 cities in the U.S., fell 19% during the first three months of 2009. The index plummeted 32.2% from its peak in July 2006 and had been down every month for 32 months (Christie, 2009).
Whitney Tilson (2009), founder of the hedge fund T2 Partners and author of the recently published book called More Mortgage Meltdown, predicted the crisis in December 2007. He stated, "We are going through the biggest asset bubble in history and it is going to take years to unwind. We are in the seventh inning of U.S. residential housing price declines. If you include losses and write-downs, we are only one-half of the way through the residential crisis. When looking at the totality of the housing crisis (including commercial real estate, Jumbo prime, prime, and HELOC loans), we are only one-third of the way through the entire real estate bubble."
In early 2009, U.S. retirement accounts also dropped by an average of 40% or $3. …