Kauffman State Entrepreneurship Indicators: California & Neighboring States
Bottom Line: California is the most entrepreneurial state in the nation according to the Kauffman Foundation's Early-Stage Entrepreneurship Index (KESE), which aggregates entrepreneurship rates, jobs created by startup, entrepreneurship by choice (rather than necessity), and survival rate after one year. While California leads the nation and its geographic peers by its KESE score, it does not lead in every component. For instance, Nevada creates more jobs per startup than California. And Arizona has a greater share of businesses created by choice. California does lead its geographic peers in entrepreneurship rate and survival rate.
- California is the number one state in the Kauffman Foundation's Early Stage Entrepreneurship Index, which aggregates data on entrepreneurship rates, entrepreneurship by choice, jobs created per startup, and start-up survival rate.
- 0.44 percent of California's population starts a business each month, exceeding its regional peers and the national average of 0.33 percent.
- Among its regional peers, Arizona exceeds California in businesses created by choice rather than necessity, and Nevada exceeds California in jobs created per start-up.
Read the full report here.