Kauffman report: Denver drops in startup activity but remains in nation's Top 10 metropolitan areas

Thursday May 18, 2017 0 comments Tags: Denver, Kauffman Index of Startup Activity

 

DENVER -- Denver dropped two places on the Kauffman Index of Startup Activity, which measures startup growth in the nation’s top 40 metro areas.denver-logo2

Denver was ranked No. 10 on the just-released 2017 list, dropping from its No. 8 position in 2016.

The top 10 metro areas on the 2017 list are:

  • 1 – Miami
  • 2 – Austin
  • 3 – Los Angeles
  • 4 – San Diego
  • 5 – Las Vegas
  • 6 – San Antonio
  • 7 – New York City
  • 8 – Phoenix
  • 9 – Houston
  • 10 – Denver

The Kauffman Index of Startup Activity is based on three components:

  • Rate of new entrepreneurs
  • Opportunity share of new entrepreneurs
  • Startup density

“The Kauffman Index of Startup Activity is an early indicator of the beginning of entrepreneurship in the United States, focusing on new business creation, market opportunity and startup density,” the report notes.

The report said that, after two years of large increases, startup activity nationwide rose slightly in 2016, but continued an upward trend started in 2014.

In that year, the Startup Activity Index was at its lowest point in the last 20 years, the report said. It was gone up now for three years in a row, reaching close to the peak achieved before the Great Recession that began in 2009.