excerpt from original post from AdvisorSmith on October 2, 2019. By Adrian Mak. Full article here.
New business formation is an important driver of employment and the creation of new jobs in the United States. In this study, AdvisorSmith researched the number of new businesses formed on a per capita basis in 353 U.S. cities and 50 U.S. states to find the cities and states where people are most likely to start a new business. We also broke down the cities by size in order to fairly compare business creation rates in similar-sized cities.
Our study focused on businesses that employ at least one paid employee, which excludes entities like financial or real estate holding companies. The United States has approximately 6 million businesses that have at least one employee, and the average rate of business creation was 2.3 new businesses created per 1,000 population. There were approximately 750,000 new businesses created in the United States in 2018.
The top 7 states for business creation were western states, with Montana leading the way. Mississippi was the state where people were least likely to start a new business. Small and midsize cities in western states accounted for 9 of the top 10 cities where people are most likely to start a business.
Top Cities Where Americans Start the Most Businesses by City Size
AdvisorSmith segmented our study into cities of small (<150,000 population), midsize (population between 150,000 and 500,000) and large (over 500,000 population) sizes. Below, we list the top 10 cities where Americans are most likely to start a business broken down by the city’s size.