Utah among top states for new business formation
Utah ranks just above the middle among the 50 states for overall entrepreneurial activity, according to a new survey from the University of Nebraska's Bureau of Business Research.
Still, Utah stood out on the list, not for its ranking, but for being the state with the biggest jump in the past year.
In 2010, Utah was ranked 44th on the list. Last year, it was listed at 23rd.
Even so, the survey noted that Utah is one of the top states in the nation in terms of the number of businesses launched by its residents.
"Colorado and Utah are 5th and 6th ranked, respectively in the business formation rate criterion despite being near the median among states in the overall entrepreneurship ranking," the survey said.
The University of Nebraska's State Entrepreneurship Index is based on five components:
• Percent growth in employer establishment
• Percent growth in employer establishments per person
• Business formation rate
• Patents per thousand persons, and
• Average income per non-farm proprietor
"It is interesting to note the consistent strength (or weakness) in business formation in selected states," according to the bureau. "For example, Massachusetts and Texas are two highly ranked states in the overall entrepreneurship index, are below-median states in the business formation rate. At the same time, there is substantial strength in business formation rate in many Western states."