Arkansas 2020 Snapshot | Early-Stage Entrepreneurship

2020_KESE_Snapshot_AR

Entrepreneurship is important for job creation, innovation, and the economy. This brief provides a snapshot of various indicators related to early-stage entrepreneurial activity in Arkansas.


RATE OF NEW ENTREPRENEURS

How many people are becoming entrepreneurs?

Since 2013, the rate of new entrepreneurs in Arkansas has been below the national rate, with the exception of 2019 when it was higher.

In Arkansas, the rate of new entrepreneurs in 2020 was 0.33%, meaning that 3.3 out of every 1,000 adults became new entrepreneurs, on average, in a given month. This compares to 0.34% nationally.

OPPORTUNITY SHARE OF NEW ENTREPRENEURS

How many new entrepreneurs created their business out of opportunity?

The opportunity share of new entrepreneurs was higher in Arkansas compared to the rest of the nation for the past two years.

The opportunity share of new entrepreneurs was 91.1% in Arkansas in 2020, compared to 80.9% nationally.

STARTUP EARLY JOB CREATION

How many jobs are created by new businesses?

Since 2010, the number of jobs created by startups in Arkansas has been below the national level.

There were 4.2 jobs created by startups
per 1,000 people in Arkansas in 2020
, compared to 5.0 jobs created by startups at the national level.

STARTUP EARLY SURVIVAL RATE

How many businesses survive their first year?

Since 2009, the share of startups that survive at least one year has been lower in Arkansas compared to the national level.

In 2020, 77.4% of startups in Arkansas
survived at least one year
, compared to 78.1% of startups at the national level.