2017 Kauffman Index of Startup Activity: State Trends
28 Pages Posted: 27 May 2017 Last revised: 9 Jun 2017
Date Written: May 1, 2017
The Startup Activity Index is a comprehensive 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 — which covers approximately five million companies. This allows us to look at both entrepreneurs and the startups they create.
This report presents trends in startup activity for the fifty U.S. states and analyzes trends for these states, looking at them in two cohorts: one for the twenty-five largest states by population and another for the twenty-five smallest states by population. Data on each state is benchmarked against the national average, with further details available for metropolitan areas in the Kauffman Index of Startup Activity: Metropolitan Area and City Trends and trends and demographics at the national level in the Kauffman Index of Startup Activity: National Trends.
After two years of large increases, startup activity rose slightly in 2016, continuing an upward trend started in 2014. Only three years ago, the Startup Activity Index was at its lowest point in the last twenty years. Today it has gone up three years in a row, reaching close to the peak before the Great Recession drop.
High-performing metros include perennial favorites such as Austin and San Diego, as well as some less-highlighted places, such as Los Angeles and Miami, which are covered in the Kauffman Index of Startup Activity: Metropolitan Area and City Trends.
Keywords: Kauffman Index, Entrepreneurship, Startup, State, Policy, Growth, United States, High-Growth, Business
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