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The Kauffman Index of Entrepreneurial Activity: 1996-2013

  • Author(s): Fairlie, Robert
  • et al.
Abstract

The Kauffman Index of Entrepreneurial Activity is a leading indicator of new business creation in the United States.  Capturing new business owners in their first month of significant business activity, this measure provides the earliest documentation of new business development across the country.  The percentage of the adult, non-business owner population that starts a business each month is measured using data from the Current Population Survey (CPS).The Index captures all types of business activity and is based on nationally-representative sample sizes of more than an half million observations each year. In addition to this overall rate of entrepreneurial activity, separate estimates for specific demographic groups, states, and select metropolitan statistical areas (MSAs) are presented.  The Index provides the only national measure of the rate of business creation by specific population groups.

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