Indianapolis, Indiana slip in annual startup rankings

August 25, 2016

An annual ranking that measures startup activity in U.S. states and metropolitan areas found Indiana and Indianapolis slipped in the rankings from 2015 to 2016.

The 2016 Kauffman Index of Startup Activity, released Thursday, ranked the Indianapolis-Carmel metro area 33rd among 40 metro areas, down from 27th a year ago.

Among the 25 most populous states, Kauffman ranked Indiana 22nd, down from 20th a year ago.

The rankings are based on criteria in three categories:

— Rate of new entrepreneurship, which measures the percent of the adult population of an area that became entrepreneurs in a given month;

— Opportunity share of new entrepreneurs, which measures the percent of new entrepreneurs who were not unemployed before starting their businesses;

— Startup density, which measures the number of startup firms per 1,000-firm population. Startup businesses are defined as firms less than a year old employing at least one person besides the owner.

Indianapolis saw its rate of new entrepreneurship fall from 0.23 percent to 0.18 percent from 2015 to 2016 and its startup density fall from 75.8 to 75.7 percent. The metro area saw improvement in opportunity share of new entrepreneurs, rising from 79.67 percent to 82.57 percent.

The Austin, Texas, area led the municipal rankings for the second straight year. The Miami-Fort Lauderdale area finished No. 2 for the second year in a row.

In state rankings, Indiana remained flat in its rate of new entrepreneurship, at 0.23 percent. Startup density improved from 64.2 percent to 63.5 percent. The opportunity share of new entrepreneurs fell from 75.2 percent to 74.98 percent.

Texas led the state rankings, rising from third in 2015. Florida fell from first to second.


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