Minnesota Ranks First in Five-Year Business Survival Rate
December 7, 2020
St. Paul – Minnesota ranks first in the nation in its five-year business survival rate (2015-2020), based on data from the U.S. Bureau of Labor Statistics. The state’s rate was 55.3%. In comparison, the national rate for the same period was 50.0%.
“This ranking confirms something we know to be true – people who start things in Minnesota tend to stick to it. It’s part of that Minnesota work ethic that we’re known for,” said DEED Commissioner Steve Grove. “This ranking bodes well for our economy, as we know that small businesses account for 47% of the jobs in the state.”
A recent study by MIT showed that new businesses are responsible for nearly all net new jobs and 20% of gross job creation in our economy – so encouraging new businesses is vital to our future economy.
In the third quarter, business starts in Minnesota were up nearly 60% compared to a year ago. Since the pandemic began, Minnesota is above the national average in incorporated business starts.
The Minnesota Department of Employment and Economic Development (DEED) offers a broad range of programs and services to help new businesses get started and to help existing businesses grow.