Cabinet for Economic Development
Kentucky Leads Nation in New Business Creation, According to U.S. Bureau of Labor Statistics
rankings for new businesses created rose each of the past four quarters
FRANKFORT, Ky. (Jan. 16, 2014) – Kentucky
currently leads the nation in new businesses created, according to the most
recent data from the U.S. Bureau of Labor Statistics.
Specifically, Kentucky saw a 6.05
percent year-over-year jump in new businesses opened during the second quarter
(Q2) of 2013, the most recent quarter for which information is available.
Kentucky saw 6,686 new businesses open
during Q2 2013.
“Business creation is one of the key
building blocks for economic development,” said Gov. Steve Beshear. “The fact
that Kentucky leads the nation in this key metric by a big margin shows that
our hard work has put us on the right track. New businesses are a sign of economic
know-how and success, so this report is important to both the business
community and the Commonwealth.”
The data highlights Kentucky’s ongoing
upswing in new business creation. During the first quarter of 2013 Kentucky
ranked second nationally, by percentage, in new businesses opened. During the
fourth quarter of 2012 it ranked third, and during the third quarter of 2012
fourth. Over the four most recently reported quarters, Kentucky ranked third
nationally in new businesses created.
Many of the new businesses created in Q2
2013 were “micro-enterprises,” businesses with five or fewer employees.
“This is very good news, because new
businesses are a key part of Kentucky’s ongoing, positive economic story,” said
Cabinet Secretary for Economic Development Larry Hayes. “They are a source of
new jobs and new business ideas. Knowing this, we continue to partner with them
and share our resources to help them succeed.”
Such new business growth is in line with
Kentucky’s 2013 efforts to kick-start its entrepreneurial culture, specifically
by launching the Kentucky Angel Investors Network (Kentucky Angels) and the
Office of Entrepreneurship.
Kentucky Angels links companies pursuing
funding with would-be investors from across the state. The first meeting is Jan.
The Office of Entrepreneurship was
designed to develop an entrepreneurial climate for new talent in Kentucky,
provide guidance and support to startup operations, assist existing small
businesses with growth opportunities and create a pipeline of business activity
that can be streamlined with traditional growth opportunities. It is a division
of the Kentucky Cabinet for Economic Development.
Last year was strong for many aspects of
Kentucky’s economy, including a record $23.1 billion in exports of
Kentucky-made products and services, up 14.2 percent, through last November.
Kentucky also created 274 new business projects, totaling $3.17 billion in
investment, in 2013.