Federal data shows a Minnesota business has a better chance to survive for at least five years than its counterparts in any other state. | Pixabay
Federal data shows a Minnesota business has a better chance to survive for at least five years than its counterparts in any other state. | Pixabay
Minnesota businesses beat the national average in surviving for at least five years, according to data from the U.S Bureau of Labor Statistics.
The five-year survival rate for 2015-2020 was 55.2% according to federal data, the Minnesota Department of Employment and Economic Development (DEED) reported on its website. That ranked the state as first for survival. The national rate was 50%.
DEED Commissioner Steve Grove said the ranking is a good sign for the future since small businesses make up 47% of the jobs in the state.
Business starts increased by approximately 60% compared to the third quarter of 2019, DEED reported. In addition to ranking higher for the business survival rate, Minnesota also recorded above the U.S. average for incorporated business starts.
New businesses create almost all net new jobs and 20% of gross job creation in the economy, an MIT study found. Encouraging new business starts is important to the state’s economy, DEED said.
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