Reports

EARLY-STAGE ENTREPRENEURSHIP

Indicators in this series include: rate of new entrepreneurs, opportunity share of new entrepreneurs, startup early job creation, and startup early survival rate, as well as the Kauffman early-stage entrepreneurship (KESE) index.

Read the Early-Stage Entrepreneurship methods working paper >

Cover of 2021 Early-Stage Entrepreneurship State Report

Released April 2022

State Report on Early-Stage Entrepreneurship in the United States: 2021

This report presents state trends in early-stage entrepreneurship in the United States, including all 50 states and the District of Columbia.

Report Highlights

  • The rate of new entrepreneurs in 2021 ranged from a low of 0.17 percent in West Virginia to a high of 0.61 percent in Florida. The median for states in 2021 was 0.31 percent, reflecting 310 out of every 100,000 adults.
  • The opportunity share of new entrepreneurs ranged from a low of 65.1 percent in Michigan to a high of 93.1 percent in Arkansas, with a median of 79.1 percent.
  • Startup early job creation in Vermont was 2.5 jobs per 1,000 people, compared with 6.5 jobs per 1,000 people in Florida, and a median of 4.1.
  • Startup early survival rate ranged from 73.4 percent in Hawaii to 89.2 percent in Washington, with a median of 81.0 percent.
  • The overall KESE Index – an equally-weighted composite of the four indicators – ranged from -6.0 in Rhode Island to 8.8 in Florida, with a median of 0.6.
Cover of 2021 Early-Stage Entrepreneurship National Report

Released March 2022

National Report on Early-Stage Entrepreneurship in the United States: 2021

This report presents national trends in early-stage entrepreneurship in the United States, as well as trends for specific demographic groups as available.

Report Highlights

  • Nationally, the rate of new entrepreneurs in 2021 was 0.36 percent, meaning that an average of 360 out of every 100,000 adults became new entrepreneurs in a given month. The monthly rate increased substantially from 2019 to 2020 as the economy went through the shutdowns, job losses, and re-openings that characterized the early stages of the COVID-19 pandemic, and has only partly returned to pre-pandemic levels.
  • The opportunity share of new entrepreneurs rebounded substantially to 80.9 percent from its low of 69.8 percent in 2020, but remained much lower than its pre-pandemic level of 86.9 percent in 2019. The decline from 2019 to 2020 during the first year of the pandemic was 17.1 percentage points, which is much larger than the one-year decline of 6.9 percentage points from 2008 to 2009 during the Great Recession.
  • Startup early job creation in 2021 was 4.7 jobs per capita, defined here as startups hired 4.7 jobs for every 1,000 people. Startup job creation was down from pre-pandemic levels.
  • The startup early survival rate was 81.7 percent in 2021, reflecting an increase from 2020 as the economy improved.

NEW EMPLOYER BUSINESS

Indicators in this series include: new employer business actualization rate, rate of new employer businesses, new employer business velocity, and employer business newness, as well as the new employer business actualization speed (NEBAS) index.

Read the New Employer Business trends methods working paper >

2020 New Employer Business

Released April 2021

2020 New Employer Business Indicators in the United States: National and State Trends

This report presents national and state trends in new employer businesses in the United States.

Report Highlights

  • In 2020, the national rate of new employer business actualization was 9.41 percent, meaning that between 9 and 10 out of every 100 new business applications made a first payroll within eight quarters. This was down from 10.69 percent in 2019 and 11.09 percent in 2018.
  • In 2019, the national rate of new employer businesses was 0.11, meaning there were about 110 new employer businesses for every 100,000 people. This was down from 0.12 in 2018.
  • In 2016 (the most recent year for which data are available), the national new employer business velocity was 2.01, indicating that, on average, it took a little over six months between business application and first payroll. This was slightly longer than the national new employer business velocity in 2015 (1.98) and in 2014 (1.94).
  • In 2018, national employer business newness was 7.01 percent, meaning that about 7 out of every 100 employer businesses were new businesses that made a first payroll within the first eight quarters. This was up from 6.65 percent in 2017 and 6.63 percent in 2016.
  • In 2016 (the most recent year for which data are available), the national NEBAS Index was 0.70. This was down from 0.71 in 2015 and 0.73 in 2014.

Looking for data?

Go here to download the data that informed these reports >


PREVIOUS REPORTS

New Employer Business

2018 New Employer Business Reports: National and State Trends >

Early-Stage Entrepreneurship

2020 National Report on Early-Stage Entrepreneurship >
2020 State Report on Early-Stage Entrepreneurship >
2019 Early-Stage Entrepreneurship in the United States National / State Report >
2018 National Report on Early-Stage Entrepreneurship >
2018 State Report on Early-Stage Entrepreneurship >
2017 National Report on Early-Stage Entrepreneurship >
2017 State Report on Early-Stage Entrepreneurship >