As the nation's employment rate continued to improve, America's overall business creation rate fell in 2013 for a second consecutive year, according to the annual Kauffman Index of Entrepreneurial Activity released Wednesday. Entrepreneurial activity in the Miami/Fort Lauderdale metropolitan area also fell, although the region ranked No. 3 among the 15 largest metropolitan statistical areas in the country.
Nationally, the rate declined slightly from 0.30 percent of American adults per month starting businesses in 2012 to 0.28 percent in 2013. That translates into approximately 476,000 new business owners per month in 2013 compared with 514,000 the year before. Florida’s rate was 0.34 percent, ranking 8th in the country.
In the Miami area, the 2013 rate was 0.43 percent, behind the San Francisco/Oakland and Los Angeles areas. The rate was down from 0.56 percent in 2012, when the area ranked No. 1. The Miami area has typically ranked in the top five in this study.
For the first time in the 18 years this report has tracked entrepreneurship activity, the 2013 index includes new data on trends in entrepreneurship among new entrepreneurs who are not coming directly out of unemployment (also known as "opportunity entrepreneurs"). The research indicates that the share of new entrepreneurs who are not most recently jobless (necessity entrepreneurs) was much higher in 2013 than at the end of the Great Recession.
"The 2013 business creation rate signifies a return to levels that we haven't seen since before the recession," said Dane Stangler, vice president of Research and Policy at the Kauffman Foundation, which conducts the annual study. "While we have speculated in recent years that changes in entrepreneurship rates could be driven by labor market conditions, this new data provides the strongest evidence we've seen of this correlation."
Nationally, most age groups experienced declines in business creation rates, according to the study. The exception was the group aged 45 to 54, whose rate increased from 0.34 percent in 2012 to 0.36 percent in 2013.
Last month Kaufman released a national study that showed South Florida has grown faster than all other top metro areas in immigrant tech entrepreneurship.
Find the entrepreneurial activity report at www.kauffman.org/kiea.
Posted April 9, 2014