The Kauffman Index 2015: Startup Activity | State Trends

80 Pages Posted: 4 Jun 2015

See all articles by Arnobio Morelix

Arnobio Morelix

Startup Genome

Robert W. Fairlie

University of California, Santa Cruz - Department of Economics

Joshua Russell-Fritch

Independent

E. J. Reedy

University of Chicago - Polsky Center for Entrepreneurship

Date Written: June 4, 2015

Abstract

The Kauffman Index: Startup Activity is a novel early indicator of new business creation in the United States, integrating several high-quality sources of timely entrepreneurship information into one composite indicator of startup activity. The Index captures business activity in all industries, and is based on both a nationally representative sample size of more than a half million observations each year and on the universe of all employer businesses in the United States. This allows us to look at both entrepreneurs and the startups they create.

This report presents trends in startup activity over the past two decades for all the fifty states of the United States. Broad-based entrepreneurship in America appears to be slowly crawling its way out of the depths it has been stuck in since 2010.

Startup activity rose in 2015, reversing a five-year downward trend in the United States, giving rise to hope for a revival of entrepreneurship. However, the return remains tepid and well below historical trends, as shown in Figure 1 below. A principle driver of this year’s uptick is the growth of male opportunity entrepreneurship, accompanied by the continued strength of immigrant entrepreneurship - covered in the Kauffman Index: Startup Activity | National Trends. Males were hit particularly hard during the Great Recession. Metro-area stars of the startup surge include perennial favorites like Austin and San Jose - covered in the Kauffman Index: Startup Activity | Metropolitan Area and City Trends - as well as some less-highlighted places, such as Miami and San Antonio.

In this report, we focus on startup activity at the state level.

Keywords: entrepreneur, rate, state, united states, kauffman index, entrepreneurial activity, startup activity, opportunity share, state

Suggested Citation

Morelix, Arnobio and Fairlie, Robert W. and Russell-Fritch, Joshua and Reedy, E. J., The Kauffman Index 2015: Startup Activity | State Trends (June 4, 2015). Available at SSRN: https://ssrn.com/abstract=2614598 or http://dx.doi.org/10.2139/ssrn.2614598

Arnobio Morelix (Contact Author)

Startup Genome ( email )

212 Clara Street
San Francisco, CA 94107
United States

Robert W. Fairlie

University of California, Santa Cruz - Department of Economics ( email )

Department of Economics
Engineering 2 Bldg.
Santa Cruz, CA 95064
United States
831-459-3332 (Phone)

HOME PAGE: http://econ.ucsc.edu/~fairlie/

Joshua Russell-Fritch

Independent ( email )

No Address Available

E. J. Reedy

University of Chicago - Polsky Center for Entrepreneurship ( email )

5807 S. Woodlawn Ave., Suite 207
Chicago, IL 60637
United States
773-834-0812 (Phone)

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