Kauffman Index 2017: Growth Entrepreneurship State Trends

Abstract

The reports present trends in Growth Entrepreneurship in each state, relying on three composite indicators to look at business revenue and job growth: Rate of Startup Growth, Share of Scaleups and High-Growth Company Density.

To facilitate comparison across peer groups of states, the Kauffman Index looked at the 25 largest and 25 smallest states by population. The larger states are overwhelmingly urban, while populations in smaller states tend to be more dispersed.

Entrepreneurial growth is geographically diverse, touching cities on both coasts, the South and Midwest. Entrepreneurial activity is spreading to places other than the stereotypical entrepreneurial hubs and largest U.S. cities. Nonetheless, entrepreneurial growth continues to be a rare phenomenon. Most firms are not growth firms.

Among the largest states, these five had the highest levels of growth entrepreneurship in 2017 are: Virginia, Georgia, Maryland, Massachusetts, Texas. Among the smallest states, these five had the highest levels of growth entrepreneurship in 2017: Utah, Hawaii, North Dakota, Nevada, New Hampshire.

Keywords: kauffman index, job growth, startup, entrepreneurship, states, entrepreneurial, revenue