Earlier this month the Minnesota Chamber Foundation released a report examining entrepreneurship in the state.
“After several decades of declining business formation rates, the COVID-19 pandemic created a surprising surge in entrepreneurial interest in the U.S. and Minnesota alike. New business applications – a leading indicator of new business starts – rose by 26% in 2020 and 2021. This surge has only gained momentum throughout the pandemic,” says the report.
A handful of Entrepreneur Fund team members attended the presentation of the “Minnesota Entrepreneurship: A Turning Point” report which went on to say, “Entrepreneurs are often unaware of the resources that exist to support them.”
At the Entrepreneur Fund we partner with small business owners, especially those in rural communities and women and BIPOC entrepreneurs, and help them get access to financing and other resources they need to succeed and grow.
Many of the key findings in the report relate directly to the work we do in the 16 Minnesota counties we serve.
- Prior to the pandemic, formation of new employer businesses had been slowing over time, with startup rates declining slightly faster in Minnesota than the U.S. this century.
- States in the Sun Belt and Western regions have seen the largest relative startup gains, while states in the Midwest and Northeast have seen the largest declines.
- Entrepreneurship is increasingly shifting to nonemployer firms over time.
- Startups in Minnesota get off the ground faster and survive longer than peers in other states.
- High growth startups are a Minnesota strength, and there is positive momentum on this front.
- New business applications spiked during the pandemic both nationally and in Minnesota.
- Minnesota startups are nationally competitive across a range of verticals; health care and medical innovation remain a core strength.
- Startups are forming in areas with greater population density. However, changes during the pandemic may offer new opportunities for rural communities in Minnesota.
- BIPOC businesses remain underrepresented in Minnesota’s economy. But they are growing at a fast rate and outperforming BIPOC businesses in the U.S.
You can find the full Minnesota Chamber Foundation report here.
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