Missouri ranks next to last in entrepreneurial activity
A recent study by the Kauffman Foundation should raise all kinds of red flags for people concerned about Missouri’s business climate. The show-me state ranks next to last in the rate of entrepreneurial activity, with 150 business startups per 100,000 adults. Only Pennsylvania ranks lower, at 140 startups per 100,000 adults. Top-ranked Georgia had nearly four times as many entrepreneurs, 590 per 100,000.
The Midwest in general is not a hotbed of entrepreneurism; Iowa and Wisconsin also rank very low. Illinois ranks 35th at 260 entrepreneurs per 100,000 adults.
The rate of entrepreneurial activity in the U.S. rose last year, but it dropped sharply in Missouri. Nationally, some of the biggest increases were among immigrants and among people ages 55 to 64.



David Nicklaus has covered St. Louis business for more than 25 years. His column appears three days a week on the Post-Dispatch business page.
Missouri has been known in the past few decades as not leading the pack in the marketing sense of business. We wait to see if the idea or the product lasts, is proven trust worthy and the company that sold the product stands up to warranty claims and customer service. That is why the scam artist and other get rich overnite schemes do not work here.
Missouri seems to always be on the bottom of every list. It’s just not a progressive culture and has bled jobs for the past four decades. Yet, the Police State doesn’t understand that if you send all the factories and jobs to China and India and destroy family farms in favor fo Factory Farming, that people will still try and survive and end up in non-productive activities like Meth Labs in order to survive. Missourians carry around a false sense of pride as if there’s nobility in ignorance.
As someone who was born and raised in St. Louis, there’s no surprise in this report to me.
I do computer software, and I’ve had to go to one of the coasts to pursue my chosen profession at the ‘pace’ I wanted. People here are just too risk averse for the way the economy works now. And no, its not all about ’scam artists’ and ‘overnight get-rich-quick’ schemes. It’s about working your butt off, taking a big risk and maybe you win, maybe you don’t but you’re out there - trying to make the future (or at least *your* future) happen.
On 2 different occasions, I’ve spent time in the Silicon Valley area totaling about 3 years. I’ve noticed 2 distinct differences in living there (in addition to the cost of living - which is a *definite* disadvantage over STL):
1. The price for failure is very low. People, at least in my profession, will continue to try different things, sometimes failing, sometimes succeeding, but there are countless people you meet at work and in leisure who have worked for maybe 10 companies during the course of their work lives - and they’re 35 years old. And the attitude is “well, we tried and failed… but we learned… and we’ll do it better or different next time!”
2. The acceptance of others and their quirks is very high. I had multiple co-workers who were gay, and I admit I was taken aback the first time I heard this guy talk about his ‘husband’, but I got over it quickly and learned that everyone has their quirks - and they still have a *lot* to contribute. Some of these folks were among the smartest people I know (several of them currently work at Google).
As MOMO said, we in Missouri act as if there’s nobility in ignorance. Of course, what do you expect coming from a ‘beer and baseball’ culture? The future of this city is not to be found on Pestalozzi St. or out in Fenton or in Wentzville. The future of this city is happening at places like Wash U., Monstano, Pfizer and the myriad of small companies in the biotech space that are ‘going for it’ - trying something new, and risky, and different and if they succeed, they’ve invented a piece of the future.
There’s no nobility in ignorance. There’s nothing funny or cool about not knowing how the world is changing around you and choosing to bury your head in the sand. If you do, you’re leaving another part of your anatomy exposed for kicking by the hordes of Chinese who are learning fast and who are a *lot* hungrier than you.
I love my hometown - it will always be home for me. Most of my family and friends are here. But this quote always sums it up for me about STL:
“The world is full of people whose notion of a satisfactory future is, in fact, a return to the idealised past.” —Robertson Davies
Missouri is known as the eminent domain abuse capital of the US. Why would any entrepreneur risk time and money in a State that is governered by politicians that have sold out every home owner, small businessman, and Church to special interests,(big developers)? Entrepreneurs should go to New Mexico, Georgia, Florida, and a host of other States that have passed meaningful eminent domaion reform. Bravo to the HONEST politicians in the States that have protected the little guys.
“Missouri is known as the eminent domain abuse capital of the US. Why would any entrepreneur risk time and money in a State that is governered by politicians that have sold out every home owner, small businessman, and Church to special interests…”
What does imminent domain have to do with starting a company? (assuming this is what you mean by eminent)
As someone who is about to launch a commercial software concern, that would be pretty low on my list.
Woops, just looked it up: eminent appears to be the word.
Question stands: why is that of concern to me as a startup?
too many rules, fees, inspections… and other crap.
As a new business owner whose business is to help companies with new technology to improve their business by improving quality and cost reduction, introducing Green Technology and other avenues of improvement, I find it so frustrating that these companies refuse to even consider the fact that there may be a better way.
With that state of mind, more St. Louis companies are doomed to fail. Even with the economy they way it is, now is the time to be looking for ways to get better, not to hunker down and ride out the storm.
I will succeed, even without these hide in the sand companies, wake up St. Louis executives, now is the time to act!
At least in St. Louis and Kansas City, the potential profits that induce entrepreneurs to invest capital are a lot more likely to be stolen by unionist extortion than they are by government exercising eminent domain. Under eminent domain, at least there is a Constitutional guarantee of “just compensation.” There is no such restraint on what a union can demand as a condition of allowing a business to make profits.
It’s called Communism, and it is alive and well in the state of Misery..