Minnesota Ranks First in Five-Year Business Survival Rate
7 Dec 2020
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.