June 24, 2015
In the just-released Kauffman Index of Startup Activity, the Kauffman Foundation has ranked the state of Vermont #5 in the country for business start-ups.
The index evaluates states across three measures:
The rate of new entrepreneurs in the economy, calculated as the percentage of the adult population in the state who became entrepreneurs in a given month. Vermont scored 0.40 percent in the category, third in the nation.
The opportunity share of new entrepreneurs, calculated as the percentage of adults who started new businesses because they saw opportunity, not out of necessity. More than 79 percent of the state's new entrepreneurs were inspired by opportunity, placing Vermont at about the midpoint among the states.
Start-up density, the number of start-up firms per 100,000 state residents. The state's score of 157.4 start-ups per 100,000 Vermonters placed it eighth in the nation.
The new accolade comes on the heels of Burlington's #9 ranking in a February 2015 Forbes list of the country's top ten most innovative tech hubs. A recent story in Atlantic Monthly on the city's growing technology sector called Burlington a "Silicon Valley in Vermont."
"The Kauffman ranking reflects the inherently innovative culture of the people of Vermont," said Joan Goldstein, the Commissioner of the Vermont Department of Economic Development. "Additionally, we have created quite the support system for entrepreneurs, including the research-based University of Vermont, the Vermont Center for Emerging Technologies, the Vermont Small Business Development Centers, the Vermont Economic Development Authority and a variety of community banks and micro-lenders. One of our goals is to make it easier to start a business in Vermont. This ranking proves that we have established the ecosystem to make it happen."
Contact: Joan Goldstein, Commissioner, Vermont Department of Economic Development, (802) 272-2399, Joan.Goldstein@state.vt.us
Source: Department of Economic Development
Last Updated at: June 24, 2015 10:38:34