The Kauffman Index, which measures U.S. entrepreneurship across national, state and metro levels, debuted its rankings for the Best Metro Area for Growth Entrepreneurship for 2016. The Index based its rankings on the rate of startup growth, share of scale-ups and high-growth company density.
Two Virginia metro areas landed in the top 25. For the second year in a row, the Washington, D.C., metro area came in at the top spot. The rate of startup growth was a staggering 116.85 percent—up from 72.05 percent in 2015—which looks at how startup businesses have grown as a cohort five years after being founded. Share of scale-ups, which measures small firms that grow to employ 50 or more people by the company’s 10th year, grew to 2.34 percent. The D.C. metro area also had the greatest high-growth company density, a factor measuring the number of private businesses with a minimum of $2 million in annual revenue, reaching three years of 20 percent annual revenue growth, normalized by total business population.
The Virginia Beach metro area, better known as Hampton Roads to Virginians, came in at 25. The region’s rate of startup growth increased by more than 15 percent, with scale-ups growing to 1.86 percent. When it comes to high-growth company density, the city has 71 high-growth companies per 100,000 employer businesses.
To read the entire report, click here.