The reports present trends in Growth Entrepreneurship in each state and the 40 largest metro areas relying on three composite indicators to look at business revenue and job growth: Rate of Startup Growth, Share of Scaleups and High-Growth Company Density.
To facilitate comparison across peer groups of states, the Kauffman Index looked at the 25 largest and 25 smallest states by population. The larger states are overwhelmingly urban, while populations in smaller states tend to be more dispersed.
Virginia took first place in growth entrepreneurship activity among the 25 largest states, followed by Maryland, Arizona, Massachusetts and Texas. Kauffman researchers said it is no coincidence that two of the top states include the highly entrepreneurial Washington, D.C., metro area. Among larger states, 12 ranked higher than they did last year, four experienced no change in rankings and nine ranked lower.