Karis: Chicago took a slight dip in a national ranking of startup activity.
On the just-released Kauffman Index, an annual measure of entrepreneurial output, such as new companies, business density and growth rates, the Chicago metropolitan area came in at #31, a one-spot drop from it’s #30 ranking last year.
Jim: Here’s a look at where it stacks up according to Kauffman’s metrics:
- Rate of new entrepreneurs (the percentage of adults transitioning into entrepreneurship at a given point in time): .22%
- Opportunity share of new entrepreneurs (The percentage of new entrepreneurs driven primarily by “opportunity” vs. “necessity” ): 80.40%.
- Startup density (the number of startup firms per 1,000 firm population): 74.7.
Karis: Chicago’s slight dip may be less an indication of a startup slowdown in the city, and moreso that other cities are starting up at a faster rate. Established entrepreneurship centers already have a density established and may not have as many new people jumping into entrepreneurship (because they’re already working in the ecosystem).
Miami, Austin and LA took the top three spots, while St. Louis, Cleveland, and San Antonio all rose significantly the rankings. San Francisco came in at #14, San Jose at #16, and Boston at #21.
The good news is overall startup activity is on the uptick. In 2013 the Startup Activity Index was at its lowest point in the last twenty years. But it has gone up the last three years in a row, nearing the peak it hit before the recession.