Minnesota 2020 Snapshot | Early-Stage Entrepreneurship

2020_KESE_Snapshot_MN

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 Minnesota.


RATE OF NEW ENTREPRENEURS

How many people are becoming entrepreneurs?

Since 2008, the rate of new entrepreneurs in Minnesota has been below the national average.

In Minnesota, the rate of new entrepreneurs in 2020 was 0.18%, meaning that 1.8 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?

Since 2018, the opportunity share of new entrepreneurs was lower in Minnesota compared to the rest of the nation.

The opportunity share of new entrepreneurs was 66.5% in Minnesota in 2020, compared to 80.9% nationally.

STARTUP EARLY JOB CREATION

How many jobs are created by new businesses?

In recent years, the number of jobs created by startups in Minnesota has been below the national level.

There were 3.6 jobs created by startups per 1,000 people in Minnesota 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?

The share of startups that survive at least one year has been higher in Minnesota compared to the national level for the past two years.

In 2020, 80.1% of startups in Minnesota survived at least one year, compared to 78.1% of startups at the national level.