Kansas City-based Kauffman Foundation has released its annual research ranking the 25 largest states in the nation on their startup activity and small business growth. South Carolina has maintained its No. 13 startup activity ranking and has risen four spots to No. 20 in small business activity.
The Index of Startup Activity evaluates states’ new business creation based on the following:
- Percentage of adults becoming entrepreneurs in a given month;
- Percentage of new entrepreneurs driven primarily by opportunity versus necessity; and
- Number of new employer businesses divided by the total population of existing employer businesses.
The Index of Main Street Entrepreneurship – measures established small business activity and takes into account three components of local, small business activity: the rate of businesses owners in the economy, the 5-year survival rate of businesses, and the established small business density. The calculations are based in Current Population Survey, with sample sizes of more than 900,000 observations, and the Business Dynamics Statistics, which covers approximately five million businesses.
Kauffman also released its Index of Growth Entrepreneurship – measuring entrepreneurial business growth. South Carolina fell two spots to No. 13 in this category. The Kauffman Index of Growth Entrepreneurship takes into account three components of entrepreneurial business growth: the rate of startup growth, the share of scale-ups, and high growth company density. The calculations are performed using the Business Dynamics Statistics, which covers approximately five million businesses, and Inc. 500/5000 data.
This post contains excerpts from an article published by the Upstate Business Journal. Read the full article here>>