Startups Across America

How many new businesses are created each year? A new Kauffman Foundation study tracks entrepreneurial activity in the U.S.

The rate of business creation in the U.S. held steady at 290 adults out of every 100,000 creating new businesses each month between 2005 and 2006, suggesting that nearly 465,000 people created new businesses on average per month. That's according to the Kauffman Index of Entrepreneurial Activity, an annual study that measures business startup activity for the entire U.S. adult population at the individual owner level. The Kauffman Foundation, a private organization in Kansas City, Mo., that promotes entrepreneurship, plans to release its annual Index, which it first commissioned in 2004, on May 23.

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