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 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 presents indicators for all 50 states and the District of Columbia for 2018.

• The rate of new entrepreneurs ranged from a low of 0.12 percent in Rhode Island to a high of 0.46 percent in Florida, with a median of 0.29 percent. Nationally, the rate of new entrepreneurs in 2018 was 0.32 percent, meaning that an average of 320 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 businesses out of opportunity instead of necessity. This indicator ranged from a low of 68.43 percent in Wisconsin to 94.05 percent in South Dakota, with a median of 85.68 percent. The national opportunity share of new entrepreneurs in 2018 was 86.16 percent.
• Startup early job creation captures job creation, measured as the total number of jobs created by startups per capita. This indicator ranged from 3.06 jobs per 1,000 people in West Virginia to 11.32 in the District of Columbia, with a median of 4.68. The national startup early job creation in 2018 was 5.20 jobs per 1,000 people.
• The startup early survival rate reflects the one-year survival rate for new firms. It ranged from 70.94 percent in Missouri to 81.97 percent in Mississippi with a median of 79.4 percent. Nationally, the startup early survival rate was 79.43 percent in 2018.
• The overall KESE Index – a composite of the four indicators – ranged rom -3.80 in Rhode Island to 2.78 in California, with a median of 0.17. Rhode Island also had the lowest score on this measure in 2017, and California also had the highest score in the previous year. The national figure was 0.56, a slight decline from 0.68 in 2017. The national figure is still relatively high compared to historical averages.