North Dakota Ranks #2 in National Entrepreneurship Index
by ND Governor Posted on 10/16/2012
North Dakota ranks second among all states in the development of entrepreneurship, according to a recent study completed by the University of Nebraska, Bureau of Business Research. North Dakota ranked high on an index of five components that consider the income of entrepreneurs, business formation rates, technological innovation and growth in the number of entrepreneurs during 2011.
"The development of entrepreneurship has long been an important part of our strategy to grow our economy," Gov. Jack Dalrymple said. "Our strong business climate, the state's commitment to fostering entrepreneurship and the innovation created by North Dakota's small businesses continue to help power our economic development."
North Dakota moved up six spots from its #8 ranking in 2010, the first year of the nationwide study. The top five states in the 2011 U.S. State Entrepreneurship Index, in ranking order, are: Massachusetts, North Dakota, California, New York and Minnesota.
North Dakota ranked second primarily due to "high rates of business formation and establishment growth," according to the report. The study notes that while unemployment rates and job growth are popular measures for state economies, the Entrepreneurship Index seeks to look at the core measures of underlying economic strength, such as entrepreneurship, net migration and capital formation.
"Growing our state from within is one of the most effective strategies and we have a very positive business climate for start-ups," Commerce Commissioner Alan Anderson said. "Programs like Innovate ND and the state's business venture competition have continued to foster our state's entrepreneurial spirit and help people get businesses off to a good start."
