According to the Bureau of Labor Statistics, about a million new businesses open in the U.S. each year. But what drives people in America to take the entrepreneurial leap? Sourcing data from the U.S. Census Bureau’s latest Annual Business Survey, OnDeck analyzed the reasons why people start businesses across America. The team considered the reasons that local business owners rated ‘very important’ then used a local quotient method to determine the most disproportionately popular reason in each state and metro area.
Here’s a look at the state by state results:
Key findings of the study include:
- The desire to earn a greater income is what inspired entrepreneurs from 14 states to start a business — including Texas, Florida and Nevada.
- New York and Delaware are the only states where “Couldn’t find a job” is the main reason for owning a business.
- East coast business owners tend to be motivated by family connections such as a family business or role model.
- West coast owners are more motivated by family responsibilities and the freedom to work when they choose.
- Entrepreneurs in five out of the ten most populous metro areas are primarily in it for an earnings boost. These are the metros around Chicago, Dallas, Houston, Philadelphia and Phoenix.