Atlanta Buzz

Georgia Tops In Entrepreneurial Activity

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TechJournal South

Georgia and Nevada tied for the top spot for the highest rate of entrepreneurial activity in 2010, according to a report by The Kauffman Foundation. Both came in at a .51 percent rank, meaning 510 people per 100,000 created businesses each month during the year in the two states.

We have noted in numerous stories that the Atlanta entrepreneurial ecosystem has ramped up noticeably over the last year, with startup focused groups and events popping up almost monthly.

Tennessee’s high .41 rank and Florida’s at .40, both first tier performances topping North Carolina’s .35, were a bit surprising, although Tennessee, like Georgia, has seen increasing private and public efforts to boost entrepreneurial activity.

Southeast ranks

In the Southeast, North Carolina weighed in at .35 percent, putting in the second highest tier of entrepreneurial activity. South Carolina posted .23 percent, Florida .40, Virginia and Maryland at .24, Tennessee at a high .41 and Kentucky at .29. See: Entrepreneurial Activity by State.

The Kauffman Foundation report, however, points out that “While the economy and its high unemployment rates may have pressed more individuals into business ownership, most of them are going it alone, rather than starting companies that employ others.”

Nationally, according to the “Kauffman Index of Entrepreneurial Activity,” a leading indicator of new business creation in the United States, 0.34 percent of American adults created a business per month in 2010, or 565,000 new businesses, a rate that remained consistent with 2009 and represents the highest level of entrepreneurship over the past decade and a half.

In contrast, however, the quarterly employer firm rate has dropped from 0.13 percent in 2007 to 0.10 percent in 2010.

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