The Kauffman Index 2015: Startup Activity | Metro Trends

Sacramento, ranked at #16 in 2014, drops to #23 in 2015.

The Kauffman Index: Startup Activity provides a broad index measure of business startup activity in the United States. It reports trends in startup activity for the forty largest metropolitan areas in the United States by population. It is an equally weighted index of three normalized measures of startup activity. The three component measures of the Startup Activity Index are:

The Rate of New Entrepreneurs in the economy the percent of the adult population of an area that became entrepreneurs in a given month.
The Opportunity Share of New Entrepreneurs – Broad indicator of the percent of new entrepreneurs starting businesses because they saw market opportunities. Measures the percent of new entrepreneurs who were not unemployed before starting their businesses.
The Startup Density of a region – Number of startup firms per 100,000 resident population. Startup businesses here are defined as firms less than one-year old employing at least one person besides the owner.

Though the region’s startup community continues to grow in enthusiasm and saw modest increases in the Opportunity Share of New Entrepreneurs and Startup Density measures, the decline in Rate of New Entrepreneurs dragged the overall ranking for Sacramento down 7 points.