The Texas capital has unseated Silicon Valley as the nation’s top spot for startups, according to the latest Kauffman Index report.
The index, produced annually by the Ewing Marion Kauffman Foundation, measures entrepreneurship at the national, state and metro levels across three metrics: the rate of new entrepreneurs, the number of entrepreneurs who started their companies when unemployed, and the number of startups per capita.
According to the data, roughly 555 out of every 100,000 adults in the Austin region became entrepreneurs in a given month during the past five years.
(To beat Austin, Long Island would have to increase its number of startups from a few hundred to more than 16,500.)
The city index ranked Miami second. San Jose fell two spots to No. 3 in this year’s edition, followed by Los Angeles, Denver, San Francisco and the New York City metro area, which includes Long Island and Northern New Jersey. The complete metro list is here.
On the state level, New York was ranked 11th, down two spots from last year. Montana was No. 1 when measuring entrepreneurs per capita.