A new study puts Minnesota in the top 10 U.S. states to launch a startup in, owing partly to a strong survival rate among fledgling businesses here.
The study, conducted by Lensa, a job search engine that helps provide resources for job seekers, ranked all 50 U.S. states according to these factors: new business applications, business survival rate, rate of new entrepreneurs, corporate tax rate, share of college-educated population, labor costs, cost-of-living index score, venture capital disbursed per $1 million of GDP and a startup score out of 10.
Minnesota has some weak spots compared to its competition: It has relatively few new entrepreneurs and new business applications (just 64,638 of the latter in 2021, which is below average and far below the 500,000 applications in California.)
However, Minnesota had one of the highest business survival rates (8.68%), with only Massachusetts beating us at 9.34%.
Lensa gave Minnesota an overall ranking of 5.87 out of 10. Minnesota’s other metrics included 36.8% of the population with a college education, a 100 cost-of-living index score, and $4,370 venture capital disbursed per $1 million of GDP.