The measurement came from the Ewing, Marion Kauffman Foundation of Kanas City, MO. The long-time researcher and advocate for entrepreneurs, recently developed the ranking as a way to identify a key element of job growth.
The foundation was formed by the late founder of a pharmaceutical company and owner of the Kansas City Royals baseball team.
Delaware Business Now will look at two other rankings in coming days.
The reported noted that such firms have sometimes been identified in media and business circles as cheetahs or gazelles, due to their ability to grow and move rapidly.
Delaware ranked third in the survey, behind Utah and New Hampshire. The report listed small and large states separately.
A report from the foundation said the fast-growing start-ups are important for the following reasons:
- Account for as many as 50 percent of new jobs created.
- Differentiate themselves from other companies by expanding not just in size but also in number of new locations—creating new opportunities in diverse geographic areas.
- Encourage subsequent employment growth in their related industries.
The foundation suggested the following ways to encourage the growth of such businesses.
- Increase college completion rates to develop a young workforce
- Welcome immigrant entrepreneurs, who play a disproportionate role in founding companies that make a big economic impact
- Retain high-skilled immigrants and foreign students who graduate from American universities with the skills growing companies need.
- Limit the scope, duration, and enforcement of non-compete agreements so that employees with entrepreneurial ambitions can more easily start new businesses. People who start companies generally have industry knowledge that helps them start successful companies
