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

Suggested citation: Fairlie, Robert, Sameeksha Desai, and A.J. Herrmann. (2019) 2017 State 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 represents indicators for all 50 states and the District of Columbia for 2017.

• The rate of new entrepreneurs ranged from a low of 0.16 percent in Delaware to a high of 0.47 percent in Wyoming, with a median of 0,30 percent. Nationally, the rate of new entrepreneurs in 2017 was 0.33 percent, meaning that an average of 330 out of every 100,000 adults became new entrepreneurs in a given month.
• The opportunity share of new entrepreneurs estimates the percentage of those new entrepreneurs who created their businesses out of opportunity instead of necessity. This indicator ranged from a low of 68.7 percent in Rhode Island to a high of 94.0 percent in Nebraska, with a median of 84.7 percent. The national opportunity share of new entrepreneurs in 2017 was 84.4 percent.
• Startup early job creation captures job creation, measured as the total number of jobs created by startups per capita. This indicator ranged from 2.95 jobs per 1,000 people in West Virginia to 10.34 in the District of Columbia, with a median of 4.71. The national startup early job creation in 2017 was 5.27 jobs per 1,000 people.
• Startup early survival rate reflects the one-year survival rate for new firms. It ranged from 73.48 percent in Georgia to 88.13 percent in Maine, with a median of 79.1 percent. Nationally, the startup early survival rate was 79.8 percent in 2017.
• The overall KESE Index – a composite of the four indicators – ranged from -2.93 in Rhode Island to 2.86 in California, with a median of 0.01. The national figure was 0.68. The KESE Index increased from 0,50 in 2016 to 0.68 in 2017. This large increase in 2017 resulted in the highest level recorded over the past two decades. It was driven by increases in the rate of new entrepreneurs, startup early job creation, and startup early survival rate.