Business Launch Rate Falls In Missouri

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Missouri ranks 35th in the latest index of entrepreneurial activity from the Kauffman Foundation. | Courtesy of Creative Commons

Just 0.22 percent of Missouri adults launched businesses last year, down from 0.35 percent in 2012, according to a new report from the Ewing Marion Kauffman Foundation. That dropped Missouri from 18th place to 35th on the Kansas City-based Kauffman Foundation’s index of entrepreneurial activity. The Show-Me State ranked sixth in 2011, but it also finished next-to-last as recently as 2008.

Nationally, the entrepreneurial rate declined to 0.28 percent from 0.30 percent.

Startup activity rose after the recession as many people started businesses out of necessity. As jobs become easier to find, fewer people are starting consulting or freelance businesses. Kauffman says it can’t disaggregate between “high-growth-potential businesses and individuals starting businesses because of limited job opportunities.” One thing that may be hurting Missouri is its relative lack of immigrants, who are much more likely to start businesses.

Read more from the St. Louis Post-Dispatch

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