Maine scores among top 10 states for early-stage businesses, prestigious study says
Courtesy / Ewing Marion Kauffman Foundation
The scores in this year's Kauffman Early-Stage Entrepreneurship Index are shown here. The highest score, 5.16, was in Florida.
The latest edition of a prestigious annual study says Maine is doing better than last year — and better than most states this year — in fostering the beginnings of businesses.
The “State Report on Early-Stage Entrepreneurship,” published in March by the Ewing Marion Kauffman Foundation, ranks Maine No. 8 in the country. The report evaluated each state on four criteria related to successful entrepreneurship, and assigned weighted scores based on those evaluations.
Maine’s score was 2.58 in the Kauffman Early-Stage Entrepreneurship Index, higher than the score of any state in the East except Florida, which had the country’s best score, 5.2. Other states ranking higher than Maine were all in the western U.S.
The lowest score, -7.84, was also in the West, in the state of Washington. The median score was -0.13, in Nevada.
The foundation has compiled the index since 1996, and it’s pegged to zero using the national average over the two-decade period from 1996 to 2005, according to the report.
Maine scored 1.8 last year and -2.0 in 2019.
The index is based on census data and information from the federal Bureau of Labor Statistics, and evaluates these factors:
- Rate of new entrepreneurs, the number of new entrepreneurs in given month
- Opportunity share of new entrepreneurs, the percentage of new entrepreneurs who created their businesses out of opportunity instead of necessity, such as unemployment
- Startup early job creation, the total number of jobs created by startups per capita
- Startup early survival rate, the one-year average survival rate for new businesses.
Maine’s scores on the criteria and further information can be found here.
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