National startup activity grew slightly in 2016, a consecutive three-year improvement that reached pre-Great Recession levels, according to the Ewing Marion Kauffman Foundation, and reported by The Startland News.
However, in the long-term view startup activity is still in decline when compared to the 1980s, the 2017 Kauffman Index of Startup Activity found. To read more on the national index, click here.
Victor Hwang, vice president of entrepreneurship at the Kauffman Foundation, said that although the results are encouraging, work remains to create more economic dynamism.
“A three-year upward trend in new business formation is a promising sign for the economy,” Hwang said in a release. “Recent research demonstrates that more startups lead to higher productivity, wage growth and quality of life. Growing startups not only support individual entrepreneurs but lift surrounding communities.
“We need to identify and remove barriers and contribute to a new model of economic development that infuses more entrepreneurship into the economy.”
In Kansas City, LaunchKC, the global grants competition for tech entrepreneurs, is currently seeking applicants for its third annual challenge. At stake is $500,000 in non-dilutive grants – including a $100,000 grand prize – to attract nine tech startups to Kansas City, Missouri to establish and grow their businesses. Only 44 more days remain before the application deadline of July 7. Click here to learn more.
The Kauffman Index — which presents entrepreneurial trends nationally, at the state level and for the 40 largest metro areas — revealed two remarkable improvements in U.S. entrepreneurship, according to The Startland News.
First, the index found that more new entrepreneurs are starting businesses to pursue a good opportunity rather than to generate income. The share of new entrepreneurs pursuing a business opportunity rather than starting a firm from necessity reached 86.3 percent — a 12 percentage point improvement since 2009, according to the report.
It also found that U.S. entrepreneurs are becoming more diverse. First-generation immigrants now make up nearly 30 percent of all new U.S. entrepreneurs — the highest level for the second time in 20 years, growing from 13.3 percent in 1996.
The index also analyzes startup activity in the 25 largest and smallest states, as well as the 40 largest metro areas.
Among the largest states, California, Texas, Florida, Arizona and Colorado had the highest startup activity in 2017, respectively. Missouri ranked No. 10 in the 25 largest states. To learn more about the state-by-state comparisons, click here.