Grand Rapids has the seventh-fewest startups out of all the largest U.S. metros, according to Roofstock, a real estate investment marketplace.
The report from Roofstock shows the startup formation rate for the city is 6.27%, while the national average is 8.13%. The formation rate is defined as the number of new firms in a given year divided by the total number of firms. Nevada (10.39%) and Florida (10.16%) are the two states with the highest rates of new business creation.
Grand Rapids’ annual startup formation is 1,118, which creates 6,960 new jobs annually. Those new startup jobs represent 11.14% out of all new jobs created each year. Nationally, there are 423,148 startups formed per year, which have created 2,285,251 new jobs annually. New startup jobs in the U.S. represent 14.12% out of all new jobs.
According to the U.S. Census Bureau’s 2018 Business Dynamics statistics, the startup job sectors that have seen the most growth since 2010 are construction, information and real estate. The sectors that have been declining the most are food services, wholesale trade and management.
The data used in this analysis is from the U.S. Census Bureau’s 2018 Business Dynamics Statistics, which includes all U.S. businesses with paid employees. To identify locations with the most startups, researchers calculated the trailing five-year (2014–18) average startup formation rate. Researchers also calculated the average annual number (and proportion) of new jobs created by startup firms between 2014 and 2018.
To improve relevance, only metropolitan areas with at least 100,000 residents were included. Additionally, metros were grouped into cohorts based on population size: small (100,000–349,999), midsize (350,000–999,999) and large (1,000,000 or more).