- Florida is the most Entrepreneurial state in America
- Georgia has the second most entrepreneurial population
- Michigan is third with the largest growth in business applications
Data has revealed that Florida is the most Entrepreneurial state in America.
Research by project management experts at The Digital Project Manager analyzed 8 indicators for how entrepreneurial a state is, these included percentage of the population that start a new business, percentage of start-ups still active after 1 year, number of small businesses per 100,000 of the population, growth rate of business applications as well as others.
1 – Florida: Entrepreneurial index score: 65.12
Florida has the highest percentage of the population who have started a business (0.61%), with 86% of those starting one out of choice rather than necessity could mean being unemployed or requiring another stream of income to support oneself. These start-ups have the highest number of jobs created in the first year with 6.53 jobs created for every 1,000 of the population. With 13,238 small businesses per 100,000 of the population, this is the most in any state. Floridians clearly have an entrepreneurial mindset that doesn’t only benefit themselves but their communities with the jobs that they create.
2 – Georgia: Entrepreneurial index score: 59.31
Georgia is in second place, with 10,871 small businesses per 100,000 of the population – there is a clear entrepreneurial drive. This is supported by the second-highest percentage of the population that has started a new business (0.47%). Georgians also have a high search interest on Google for ‘how to start a business’.
3 – Michigan: Entrepreneurial index score: 58.39
Michigan is the third most entrepreneurial state. In 2022 there was a 1772% growth in business applications from 2019. 78% of start-ups are still active after one year and there are 9,091 small businesses per 100,000 of the population. The national average of businesses failing after 5 years is 49%, Michigan is slightly below that, with only 47% of businesses failing.
4 – Oklahoma: Entrepreneurial index score: 57.58
In Oklahoma, 0.44% of the population has started a new business, with 82% still active after 1 year, due to this there are 9,075 small businesses per 100,000 of the population. 84% of those in Oklahoma who start businesses do so by choice rather than the need to.
5 – Montana: Entrepreneurial index score: 57.36
In Montana there are 11,336 small businesses per 100,000. Within the first year, start-ups will create 6.14 jobs per 1,000 people, and 81% of those start-ups will still be active after the year mark. After 5 years, only 45% of businesses will fail, which is one of the lowest failure rates across the US.
6 – Wyoming: Entrepreneurial index score: 57.31
Wyoming has 12,357 small businesses per 100,000. From 2019 to 2022 there was a 120% increase in applications for businesses. This is also reflected in the Google searches, ‘how to start a business’ has one of the highest levels of search interest in America.
7 – Colorado: Entrepreneurial index score: 57.21
In Colorado 0.42% of the population have started up a new business. 81% of these start-up businesses are still active after 1 year, and within that year create 6.09 jobs per 1,000 of the population.
8 – California: Entrepreneurial index score: 57.04
California is the most populous state, which provides many opportunities for people to start businesses. There are 10,792 small businesses per 100,000 people in California. 82% of start-ups will still be active after 1 year, creating 5.7 jobs. 0.43% of Californians have started businesses and only 44% will fail after 5 years which is one of the lowest failure rates.
9 – Idaho: Entrepreneurial index score: 56.63
In Idaho start-ups will create 6.11 jobs per 1,000 of the population in their first year. 89% of these start-ups are created by choice and not a necessity. Although there was a much lower business application growth rate of only 0.20% from 2019-2022, there are still 9,320 small businesses per 100,000 of the population.
10 – Texas: Entrepreneurial index score: 56.38
Texas has the second highest population and per 100,000 of the population there are 10,163 small businesses. There was a growth rate of business applications between 2019 and 2022 of 52%. 81% of new businesses will still be active after a year and will create 5.18 jobs per 1,000 of the population, opening up further opportunity for residents of the state.
Nuala Turner, Editor of TheDigitalProjectManager.com commented: “Entrepreneurship and new businesses are a driving force in economic growth and create opportunities for communities, allowing them and their people to thrive. Entrepreneurs should be encouraged to make the steps to start businesses, and this data shows the dedication and motivation that residents in the US have to taking the leap into being business owners.
This research should serve as an encouragement to the budding entrepreneurs of the states mentioned above that is worth taking the leap to turn your passion into an income.”