Delaware ranked 19th in start-up activity, according to the newly released Kauffman Index on start-up activity.
The ranking of 19th was unchanged from a year ago. The rate was below the percentage for New York and California, which ranked 11th and 14th respectively. Both did slip in the ratings from previous years.
California, in particular is known for a tough regulatory environment and high tax rates. Among neighboring states, Maryland ranked 28th with Pennsylvania at 48th.
In a subgrouping on the percentage of new entrepreneurs, Delaware ranked 19th, unchanged from a year ago.
Delaware a ‘gazelle state when it comes to economic impact of start-ups
The same No. 19 ranking was recorded in opportunity share, a measurement that takes into account whether someone started a job on the basis of an opportunity or by “buying a job,” after being laid off from another position.
The ranking reflects a continued improvement in the economy, with a smaller percentage of new businesses coming from those who were unemployed.
The 19th ranking also showed up in start-up density, a measurement of start-ups per 100,000 population.
Delaware’s ranking was be lower when it came to Main Street Entrepreneurship
In that category, Delaware ranked 18th out of 22 smaller states. The foundation does not offer an overall national ranking in the category.
Main Street Entrepreneurship refers to established businesses with 50 or fewer employers.
Delaware has struggled with job losses among large corporations that may have been vendors of smaller, established companies.
Authors of the Main Street index said the number of immigrants and college-educated entrepreneurs is increasing. However, the percentage of younger people going into business is actually declining.
In another measurement of fast-growing start-up companies, Delaware ranked third out of 22 smaller states.
The foundation report noted that a great deal of effort went into the research, noting that a “data desert” exists in finding good information on entrepreneurial activity.
The indices is released annually by the Marion Ewing Kuffman Foundation of Kansas City, MO, a foundation started by the founder of a pharmaceutical company who also owned the Kanas City Royals Major League Baseball team.
