Montana’s rate of entrepreneurship remains among the highest in the nation as it has been for many years, according to the Kauffman Foundation, in analyzing the most current data.
Montana ties for sixth place in the rate of entrepreneurship in the United States with Alaska at .4 percent based on 2017 stats.
Montana’s entrepreneurship rate in 2017 was at the lowest level since 1998. The .40 percent rate of entrepreneurship was less than in 2016 at .43 percent and considerably less than in 2014 when it hit 0.54 percent.
Overall about 85 percent of Montana entrepreneurs start business as a matter of choice and not necessity.
Montana’s startup businesses in 2017 created on average 4.71 jobs, slightly less than in 2015 when they created 4.89 jobs. In 2013 they created 4.50 jobs,
Interestingly, the state with the highest rate of entrepreneurship is neighboring Wyoming, at .47 percent. Other states ranking high are California, Texas, Oklahoma and Florida. The state with the lowest rate of entrepreneurship is Delaware at .16 percent.
The Kaufmann Foundation reports that they have retired the Kauffman Index of Entrepreneurship and replaced it with the Kauffman Indicators of Entrepreneurship.
The rate of new entrepreneurs in the US in 2017 was 0.33 percent, which reflects that 330 out of every 100,000 adults became new entrepreneurs in an average month. The rate of new entrepreneurs captures the percentage of the adult, non-business owner population that starts a business each month.
The startup early survival rate in 2017 was 79.78 percent. This reflects that roughly 4 out of 5 new startup establishments were still active after one year of operation.
The opportunity share of new entrepreneurs was 84.4 percent in 2017, reflecting that more than 4 out of 5 entrepreneurs started a business out of opportunity as opposed to necessity. Opportunity entrepreneurs are defined as those starting a business out of wage and salary work, school, or other labor market status. Necessity entrepreneurs are defined as those starting a business out of unemployment.
The startup early job creation indicator was 5.27 per 1,000 people in 2017 (meaning that startups created, on average, 5.27 new jobs for every 1,000 people in the United States in 2017). This indicator measures how many jobs are created by startups in their first year, normalized by the total population. This allows us to track the total number of jobs created by startups while accounting for differences in population over time or by geography
Nationally the rate of entrepreneurship doesn’t vary all that much from one age group to another. Those under 34 have a growth rate of .24 percent and those 35 to 64 have entrepreneurship growth rate between .35 percent to .39 percent
The highest rate of growth in terms of education is highest among those who have less than a high school education. In fact, the rate of entrepreneurship diminishes as education levels increase.
It is also highest among immigrants .51 percent as compared to native-born, .28 percent.
Entrepreneurship is highest among Latinos at .5 percent but remains relatively the same among all other ethnic categories, Asian, Black and White rates are at around .30 percent
It’s higher among men (.40 percent – women .27 percent).
Entrepreneurship trends among non-veterans is .34 percent as compared to veterans at .21 percent