Authors: Robert Fairlie, Sameeksha Desai, and A.J. Herrmann

Special thanks: Kim Wallace Carlson, Kim Farley, Alyse Freilich, Lacey Graverson, Victor Hwang, Larry Jacob, Keith Mays, Kayla Smalley

Suggested citation: Fairlie, Robert, Sameeksha Desai, and A.J. Herrmann. (2019) 2018 National Report on Early-Stage Entrepreneurship in the United States, Kauffman Indicators of Entrepreneurship, Ewing Marion Kauffman Foundation: Kansas City.

This is a report published by the Ewing Marion Kauffman Foundation utilizing content and data from multiple sources and external contributors. Every effort has been made to verify the accuracy of the information contained in this report, and it is believed to be correct as of the publication date. Nonetheless, this material is for informational purposes, and you are solely responsible for validating the applicability and accuracy of the information in any use you make of it.

This report presents four indicators tracking early-stage entrepreneurship for the years 1996-2018, as well as trends for specific demographic groups when possible.

• The rate of new entrepreneurs in 2018 was 0.32 percent, which reflects that 320 out of every 100,000 adults became new entrepreneurs in an average month.
• The opportunity share of new entrepreneurs, representing the percentage of new entrepreneurs who created businesses out of opportunity instead of necessity, was 86.16 percent in 2018. This figure is up slightly from 2017, when it was 84.37 percent. It is more than 10 percentage points higher than it was in 2009 (73.84 percent).
• Startup early job creation focuses on early-stage job creation by startups per capita. This indicator was 5.20 jobs per 1,000 people in 2018, reflecting an increase from 4.47 in 2010.
• The startup early survival rate captures the one-year survival rate of new employer business establishments. It was 79.43 percent in 2018, essentially remaining constant over the past few years.
• The KESE Index, the summary index that combines the four indicators, was 0.56 in 2018. This figure reflects an upward trend over time, moving from -1.00 in 2009, though down slightly from 0.62 in 2017.