Md. among top areas for entrepreneurial zeal

Hanah Cho | On the Job

May 12, 2008

Maryland is a pretty spirited place for entrepreneurial activity.

Last year, 320 adults per 100,000 residents started new businesses each month, according to a recent study by the Ewing Marion Kauffman Foundation, a Kansas City, Mo., nonprofit group that encourages entrepreneurship.

The state ranks 20th out of the 50 states in new business creation with an entrepreneurial activity rate of 0.32 percent. It fell below the District of Columbia, and top-tier states such as Louisiana, Wyoming, Georgia and California, which saw entrepreneurial activity rates ranging from 0.40 percent to 0.46 percent.

States with the lowest start-up rates included neighboring Delaware, West Virginia, Pennsylvania and Virginia as well as Ohio, Alabama and Hawaii.

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Overall, the Kauffman Index of Entrepreneurial Activity found that 495,000 new businesses were started per month in 2007, with 0.30 percent of the U.S. adult population involved in the start-up process.

In Maryland, state officials and academics have put a premium on entrepreneurship, especially commercializing strong research and discoveries from universities such as Johns Hopkins and University System of Maryland schools. Several universities also have academic programs, centers and incubators to encourage budding entrepreneurs on campus.

Kauffman's study also uncovered some interesting trends in this sector, which is responsible for a bulk of the economic growth we've seen in recent years.

Here are some highlights:

&bull Men are twice as likely as women to start a business each month, a bigger difference than in previous years of the index. Entrepreneurial activity among men increased last year, while it declined for women.

&bull Immigrants are far more likely to start a business than native-born Americans.

&bull The construction industry saw the highest level of entrepreneurial activity, followed by the services sector.

&bull Manufacturing saw the least start-up activity.

&bull Among the 15 largest metropolitan areas in the U.S., Phoenix saw the highest entrepreneurial activity.

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