The Kauffman Indices is a collection of reports that show which areas in America are best suited for small business and startup firms.  While The Kauffman Indices cover multiple areas, for this article, we will be taking a look at 3 reports and see how metropolitan cities fared when it comes to supporting entrepreneurs.

Startup Activity  (Top 10)

Startup Activity refers to the rate of new entrepreneurs, opportunity share of new entrepreneurs, and startup density for an area.  Rate of new entrepreneurs measures the percent of adults that become entrepreneurs in a given month, while opportunity share of new entrepreneurs measures the percent of new entrepreneurs who were not unemployed before starting a business.  Lastly, startup density for an area covers firms per 1,000 that are less than one year old and employ at least one person.

Southern and West Cost areas make up 9 of the top 10 companies in the list with one east coast town (New York) included.

  1. Miami-Fort Lauderdale-Pompano Beach
  2. Austin-Round Rock-San Marcos
  3. Los Angeles-Long Beach-Santa Ana
  4. San Diego-Carlsbad-San Marcos
  5. Las Vegas-Paradise
  6. San Antonio-New Braunfels
  7. New York-Northern New Jersey-Long Island
  8. Phoenix-Mesa-Glendale
  9. Houston-Sugar Land-Baytown
  10. Denver-Aurora-Broomfield

Growth Entrepreneurship  (Top 10)

Growth entrepreneurship refers to the rate of startup growth, share of scale-ups, and high growth company density.  Rate of startup growth measures how startups have grown in a cohort over 5 years by change in employment, share of scale-ups measures the number of firms that started small but grew to employ 50 or more employees by year ten, while high growth company density measures the number of private businesses reaching $2 million in annual revenue while reaching three years of 20% annual revenue growth.

When looking at more established businesses, southern cities make up 40% of the top ten list while the Midwest comes in second with 30%.

  1. Washington-Arlington-Alexandria
  2. Austin-Round Rock-San Marcos
  3. Columbus
  4. Nashville-Davidson-Murfreesboro-Franklin
  5. Atlanta-Sandy Springs-Marietta
  6. San Jose-Sunnyvale-Santa Clara
  7. San Francisco-Oakland-Fremont
  8. Boston-Cambridge-Quincy
  9. Minneapolis-St. Paul-Bloomington
  10. Indianapolis-Carmel

Main Street Entrepreneurship  (Top 10)

Main street entrepreneurship refers to the survival rate, rate of business owners, and established small business density for an area.

Survival rate is the percentage of firms that remained in operation through their first five years, rate of business owners refers to the percentage of adults that own a business as their main job, and established small business density highlights established small business per 1,000 firms.

When looking at business longevity, east, south, and west coast cities tie for the top with making up 30% of the list each.

  1. Pittsburgh
  2. Boston-Cambridge-Quincy
  3. Portland-Vancouver-Hillsboro
  4. San Francisco-Oakland-Fremont
  5. Washington-Arlington-Alexandria
  6. Minneapolis-St. Paul-Bloomington
  7. Los Angeles-Long Beach-Santa Ana
  8. Providence-New Bedford-Fall River
  9. Austin-Round Rock-San Marcos
  10. Miami-Fort Lauderdale-Pompano Beach

The only city to make it in the Top 10 of each list is Austin-Round Rock-San Marcos, making it the top startup and small business area for business