Share

Sign up for the Faster Lane
email newsletter
May 18, 2012
Print Friendly

Index Ranks Kentucky Among Top 10 States in the U.S. For Entrepreneurial Activity

By Lane Report Staff

Kentucky was among the top states in the nation in terms of new start-up companies formed in 2011, according to the results of the annual Kauffman Index of Entrepreneurial Activity report.

The commonwealth tied for the eighth-highest number of start-ups in 2011, a result of a more than 27 percent increase in entrepreneurial activity since 2010.  Kentucky’s rate of growth in entrepreneurship from 2001 to 2010 was the fifth highest among all 50 states.

Kentucky’s rise is particularly encouraging considering that entrepreneurial activity decreased overall nationwide from 2010 to 2011 and in all regions of the country except the Northeast, which experienced a slight increase in rates. In the South, entrepreneurship rates in 2011 decreased overall by more than 8 percent.

Although the nationwide rate of new business creation dipped during 2011, entrepreneurship nationwide remained above pre-recession levels.

“The Great Recession has pushed many individuals into business ownership due to high unemployment rates,” said Robert Litan, vice president of research and policy at the Kauffman Foundation. “However, economic uncertainty likely has made them more cautious, and they prefer to start sole proprietorships rather than more costly employer firms. This ‘jobless entrepreneurship’ trend negatively affects job creation and the larger economic recovery.”

 

Print Friendly
Join The Discussion
Lane Report Cover May 2012 In This Issue
Rewiring the Job Market
Faster and cheaper than a degree, certificate program credential numbers up 473 percent in Kentucky since 2001-02
Features

Good Water, Good Science, Good PR
Louisville pure tap® marketing campaign continues to turn bottled water trend in utility’s favor

Abusing the Bottom Line
State’s drug and alcohol misuse rates highlight the need for and value of good workplace policies

The Enemy We Know
CDC Chief: Prevention, intervention ‘best buys’ for America’s health

Departments

Business Briefs

Fast Lane

Features

Healthcare

Interstate Lane

Passing Lane

Perspective

Spotlight on the Arts

The Lane List