Business Creation Rate

Definition

Number of quarterly establishment openings per 1,000 workers, 2010.

Description

New business formation is one of the principal ways we measure entrepreneurial energy. Businesses, i.e., firms, may be made up of several establishments (usually a single physical location). According to the Bureau of Labor Statistics, roughly 95% of firms consist of only one establishment.

toggle page width

Business Creation Rate

State	Rate of Quarterly Establishment Openings (Per 1,000 Workers)	Rank
United States	9.2
Alabama	6.5	49
Alaska	12.2	9
Arizona	9.6	22
Arkansas	9.4	24
California	9.7	20
Colorado	13.2	5
Connecticut	6.9	44
Delaware	11.3	13
District of Columbia	13.2	6
Florida	14.3	2
Georgia	11.4	12
Hawaii	8.0	36
Idaho	14.3	3
Illinois	9.1	26
Indiana	7.3	42
Iowa	6.4	50
Kansas	8.0	37
Kentucky	7.3	41
Louisiana	8.7	30
Maine	13.2	7
Maryland	9.1	27
Massachusetts	9.0	28
Michigan	8.5	34
Minnesota	7.7	40
Mississippi	6.9	45
Missouri	6.6	48
Montana	16.6	1
Nebraska	8.6	32
Nevada	9.7	19
New Hampshire	11.1	14
New Jersey	8.6	31
New Mexico	9.6	21
New York	10.8	18
North Carolina	9.3	25
North Dakota	10.9	17
Ohio	6.6	47
Oklahoma	8.9	29
Oregon	11.0	16
Pennsylvania	8.6	33
Rhode Island	12.1	11
South Carolina	7.8	38
South Dakota	11.1	15
Tennessee	5.2	51
Texas	6.8	46
Utah	13.0	8
Vermont	12.1	10
Virginia	9.4	23
Washington	8.5	35
West Virginia	7.8	39
Wisconsin	7.0	43
Wyoming	13.9	4

Source

The Small Business Economy, 2011: A Report to the President. Washington, DC: U.S. Small Business Administration, Office of Advocacy, 2011.

Local Area Unemployment Statistics. Washington, DC: U.S. Department of Labor, Bureau of Labor Statistics, 2010.