Minnesota has the highest five-year business survival rate in America, according to the U.S Bureau of Labor Statistics.
From 2015 to 2020, Minnesota had a business survival rate of 55.3%, meaning over half of the businesses open in 2015 were still open in 2020, the Bureau said. By comparison, the survival rate for the United States broadly was 50%.
"This ranking confirms something we know to be true – people who start things in Minnesota tend to stick to it. It’s part of that Minnesota work ethic that we’re known for. This ranking bodes well for our economy, as we know that small businesses account for 47% of the jobs in the state," Minnesota Department of Employment and Economic Development Commissioner Steve Grove said in a statement.
Meanwhile, new businesses are actually being started at a faster pace than they were before the pandemic began, DEED said. Business starts for the third quarter were up almost 60% over 2019, outpacing the national average.
Minnesota's unemployment rate dropped to 4.6% from 5.9% in October, DEED said last month, though that corresponded with a drop in the state's labor participation rate. The state's companies are hiring, though: last week, DEED released a list of the most in-demand jobs which included registered nurses, retail workers and software developers.
In September, DEED announced it had hired Catalina Valencia as its director of business development. Valencia is in charge of attracting and retaining business talent within Minnesota.
