LANSING – A new study gives Michigan the grade of D in entrepreneurial dynamism, only a slight improvement from last year when the state received a failing F.
The new 2006 Michigan Entrepreneurship Score Card also gave other states similar in size to Michigan rankings in the top ten. Those states are Virginia, Maryland and Washington. Massachusetts is ranked No. 1 in entrepreneurial dynamism.
“Although the D grade appears to be a slight improvement over last year, the important metric is that Michigan continues to trail most other states in entrepreneurial dynamism, which is a composite measure of the level and quality of entrepreneurship,” said Mark Clevey, Small Business Foundation of Michigan executive director. “Study after study has shown that nearly all net new jobs are created by small business entrepreneurs – not big businesses. It is ominous for our state’s economic future that Michigan continues to struggle to support entrepreneurship.”
Although the Foundation does not advocate policy positions, Clevey says greater attention needs to be paid to entrepreneurial education, economic development strategy, access to capital, technology commercialization and developing a business climate that nurtures entrepreneurs.
Michigan ranked below average in the following categories:
Entrepreneurial Dynamism: 31st
Entrepreneurial Change: 44th
Entrepreneurial Vitality: 28th
Entrepreneurial Climate: 25th
Business Costs and Productivity: 37th
Quality of Life: 33rd
But the state ranked above average for:
Government Efficiency and Regulatory Environment: 13th
Education and Workforce: 8th
The Score Card is a collaborative project of the Small Business Foundation of Michigan (SBFM), the Edward Lowe Foundation and GrowthEconomics Inc. Lawrence Technological University (Lear Entrepreneurial Center) is one of the funding sponsors.
“We’re pleased to be producing the Score Card with the SBFM because we believe it provides a state such as Michigan with a valuable perspective to help improve its economy,” said Mark Lange, executive director of the Edward Lowe Foundation. “An important goal of the Score Card is to offer credible baseline information for discussion and action by policymakers and the public.”