Study finds North Dakota has most startups per capita in the nation

BY KAYLA PRASEK

North Dakota’s economy supported more business startups last year on a per-capita basis than any other state in the nation, according to the 2016 Kauffman Index for Growth Entrepreneurship. The Kauffman Index reports that in 2015 North Dakota was home to 245 new business startups for every 100,000 residents, the strongest startup activity in the nation.

The state’s business startups also grew at a rate of 86 percent as measured by changes in new business employment last year, the strongest growth in a comparison of the nation’s 25 smallest populated states, according to the Kauffman Index.

“Growing our state from within is one of the most effective strategies and we have a very positive business climate for startups,” says Alan Anderson, North Dakota Department of Commerce commissioner, in a statement. “Programs like Innovate ND and Research North Dakota have continued to foster our state’s entrepreneurial spirit and help people get businesses off to a good start.”

The 2016 Kauffman Index ranked North Dakota fourth overall in entrepreneurship growth among the nation’s 25 smaller states, moving up seven places from last year’s report. North Dakota’s rate of startup growth rose to 86.49 percent in the 2016 ranking, up from 56.51 percent in the 2015 ranking. Rate of startup growth represents changes in employment on average from the time of founding the business through the fifth year of business.

South Dakota ranked No. 25 on the same list, while Minnesota ranked No. 15 among the 25 larger states.

“This is a good recognition for the entrepreneurs in the state as well as our entrepreneurial ecosystem,” Justin Dever, co-deputy commissioner of the Department of Commerce, tells Prairie Business. “Rankings like this validate what we’re doing at the Department of Commerce.”

The Department of Commerce’s programs provide assistance to entrepreneurs through education, boot camps, coaching, mentoring and some financial support. Dever says organizations like Emerging Prairie in Fargo and Start Bismarck have also helped nurture the state’s entrepreneurial ecosystem. PB

Kayla Prasek Staff Writer,