Minnesota ranks first in the nation in its five-year business survival rate, from 2015-2020, based on data from the U.S. Bureau of Labor Statistics.
The state’s rate was 55.3%. In comparison, the national rate for the same period was 50%, according to a news release by the Minnesota Department of Employment and Economic Development.
“This ranking confirms something we know to be true – people who start things in Minnesota tend to stick to it. It’s part of that Minnesota work ethic that we’re known for,” DEED Commissioner Steve Grove said in a prepared news statement. “This ranking bodes well for our economy, as we know that small businesses account for 47% of the jobs in the state.”
A recent study by MIT showed that new businesses are responsible for nearly all net new jobs and 20% of gross job creation in our economy – so encouraging new businesses is vital to the future economy.
In the third quarter, according to the report, business starts in Minnesota were up nearly 60% compared to a year ago. Since the pandemic began, Minnesota is above the national average in incorporated business starts.