South Carolina experienced the biggest one-year increase in startup activity in the nation, jumping from 46th in the U.S. last year to 29th this year, the Kauffman Foundation said in a recently released report.
The state was one of 32 that had a resurgence of startup activity in 2014, according to the 2015 Kauffman Index: Startup Activity.
“There’s been an explosion of entrepreneurship programs and events across the country in recent years, and while we don’t fully understand their impact, last year’s rebound in new business creation is a good sign,” Dane Stangler, vice president of Research and Policy at the Kauffman Foundation, said. “State and local leaders need to understand how many startups they have in their regions and who’s starting them so they can make decisions on how to build on what they currently have.”
The South and the West saw the most startup activity over the last year.
“Historically, the Plains and Rocky Mountain regions have not been thought of as hotbeds of entrepreneurial activity,” Arnobio Morelix, research analyst at the Kauffman Foundation, and one of the studies’ authors, said. “But entrepreneurship is closely associated with economic growth, so it should not be surprising that some of the states seeing increased levels of startup activity have experienced high rates of real GDP expansion in recent years.”