SBAM’s 2010 Entrepreneurship Score Card Finds Michigan’s Entrepreneurial Climate is Heating Up a Bit
May 15, 2010
The Small Business Foundation of Michigan’s sixth annual Entrepreneurship Score Card finds that the state is making progress in supporting an entrepreneurial climate that helps nurture job-creating small enterprises.
Update: click here to see coverage in Crain’s Detroit Business (subscription required)
The Score Card ranks and rates the entrepreneurial economies of all fifty states. It is published by the Small Business Foundation of Michigan, a foundation operated in connection with the Small Business Association of Michigan (SBAM). The Score Card is available for download here. Printed copies may be requested by calling (800) 362-5461.
“This 2010 Entrepreneurship Score Card is an important benchmark that can give us insights into how well Michigan is tilling the ground for economic gardening and propelling a new economic direction for the state,” says SBAM’s President and CEO Rob Fowler. “As in previous years, we aim the Entrepreneurship Score Card at helping policymakers understand how entrepreneurship is faring in an overall Michigan economic environment that continues to struggle for traction.”
There are some positive developments to report. The 2009-2010 Score Card finds that:
- Metrics relating to the state’s Entrepreneurial Climate continue to improve
- In entrepreneurial measures, Michigan this year is outperforming most Great Lakes States
- The concept of “economic gardening” is being embraced by more Michigan thought leaders
On the negative side, by all indicators second stage companies (defined as dynamic, growth oriented small firms) should be outperforming the general economy. However, second stage growth appears to be lagging further than it should. Note: this finding is based on 2008 data. Upcoming data from 2009 could show improvement.
This Year’s Score Card Findings
The Scorecard uses three primary measures to describe the condition and direction of the entrepreneurial economy of the state:
- Entrepreneurial Change (the amount of entrepreneurial growth or decline in an economy over the recent three years)
- Entrepreneurial Vitality (the level of entrepreneurial activity – pace and robustness of entrepreneurial activity)
- Entrepreneurial Climate (the capability of an economy to foster entrepreneurship)
A fourth measure – Entrepreneurial Dynamism – is a compilation of these three drivers
Here’s Michigan’s performance on Entrepreneurial Change, Vitality and Climate in national ranking (with 50 being worst among all states) and on a five-star ratings scale (five stars being best.) Entrepreneurial Dynamism is reported as a national ranking only.
|Current National Ranking||Current Rating||2007 Rating||2005 Rating|
Here’s how Michigan ranks among all 50 states on Entrepreneurial Dynamism.
|Current Ranking||2007 Ranking||2005 Ranking|
The Score Card results each year are widely disseminated to small business leaders and among the public policy community. SBAM uses the Score Card data to help develop an Entrepreneurial Policy Agenda, which along with the Score Card is presented to policy makers in the legislature and state government. In addition, in the coming months SBAM will be discussing the Score Card and Entrepreneurial Policy Agenda with political candidates and asking them to support an economic gardening strategy as an important tool for growing jobs and personal income, and developing communities.