Atlanta and Georgia lead U.S. in new business creation

Metro Atlanta had the highest entrepreneurial activity rate among the 15 largest metropolitan areas in the country last year, and Georgia led all states, according to a new study.

Georgia also experienced the greatest increase in entrepreneurial activity over the last decade, the report, called the Kauffman Index, said.

Gov. Sonny Perdue said in a statement that the news “cements our status as the most entrepreneur-friendly state in the U.S.”

“By pretty much any measure, Georgia has done well,” said Robert W. Fairlie, author of the study and a professor of economics at the University of California Santa Cruz.

The Kauffman Index is considered a leading indicator of new business creation, identifying new businesses in their first month of significant business activity.

Last year, an average of 320 of every 100,000 adults nationwide created a new business each month, according to the study, up from 300 in 2007.

In Georgia, 590 of every 100,000 adults created a business each month. New Mexico was second with 580, followed by Montana, Arizona, Alaska and California.

Entrepreneurial activity was lowest in Pennsylvania, followed by Missouri, Wisconsin and West Virginia.

Georgia also experienced the greatest growth over the last 10 years, with an increase of 170 adults per 100,000 creating a business each month.

The availability of startup capital and the overall economic growth of a state are possible factors, Fairlie said.

Metro Atlanta led the nation’s largest cities in startups with 740 adults per 100,000 creating a business each month last year. Philadelphia was last.