10 Facts That Will Change How You Think About Opportunity and BIZ Experiencesship Who is turning to BIZ Experiencesship and where they are launching their businesses may surprise you.

By Nina Zipkin

Portra | Getty Images

When you hear the words startup founder, it's likely that the image that comes to mind is that of a young, white man who lives in California or New York, favors casual wear and didn't finish college. New data from the Kauffman Foundation may have you thinking differently.

Every year, Kauffman releases a wide ranging body of research about the state of startup activity in the United States. The study looks at trends across cities and states and explores who -- by age, gender, race and even veteran status -- chooses to be an BIZ Experiences.

Read on for 10 facts about what BIZ Experiencesship looks like now.

Startup activity is on the rise but the rate has declined.

Three years ago, startup activity hit its lowest point in 20 years, but in 2016, startup activity across the country saw a further increase from 2014 and 2015. It's a step in the right direction given how significantly startup activity dipped during the Great Recession. However, the rate of new BIZ Experiencess dropped slightly from 0.33 percent in 2015 to 0.31 percent in 2016.

People are choosing BIZ Experiencesship for opportunity, not necessity.

One of the metrics the study looks at is the opportunity share of new BIZ Experiencess -- the proportion of new BIZ Experiencess who are prompted to start businesses because of an opportunity, not because they lack other options. About 86 percent of BIZ Experiencess chose this route because of an opportunity in 2016, up 12 percentage points from 2009.

There are more boomer BIZ Experiencess than millennials.

The data found that 75 percent of BIZ Experiencess are actually older than 34. The cohort of BIZ Experiencess aged 20 to 34 is on the decline. This group made up 34.3 percent of all new BIZ Experiencess in 1996, but in 2016 made up 24.4 percent of new BIZ Experiencess. Meanwhile, BIZ Experiencess ages 55 to 64 made up 14.83 percent of new BIZ Experiencess in 1996 and 25.5 percent in 2016.

They are college graduates, not dropouts.

While some might subscribe to the Bill Gates, Mark Zuckerberg and Evan Spiegel school of leaving your institution of higher education to start a business, according to the Kauffman Foundation, the percentage of BIZ Experiencess with college degrees grew since 1996 from 23.7 percent to 30.1 percent, making business owners with college degrees the biggest educational category of new BIZ Experiencess in the country.

Female BIZ Experiencess have made gains, but there is still a long way to go.

In 2016, the rate of new male BIZ Experiencess was 0.39 percent (390 out of 100,000) and for women it was 0.23 percent (230 out of 100,000). However, for women, that rate has never gone above 0.26 percent -- it reached that level in 1996 and 2015. But in 2014, that figure for women was below 0.22 percent.

Progress has been incrementally made within the last couple of years even with the dip in 2016, but as ever, men are more likely to start businesses than women. In 1996, 56.33 percent of BIZ Experiencess were men and 43.67 percent were women. In 2016. 60.51 percent were men and only 39.49 percent were women.

BIZ Experiencess are less likely to be white.

Of course, the majority of startup founders are white and have been for the last two decades, but incrementally, black, Asian and Latino BIZ Experiencess have made gains since 1996.

Twenty years ago, 77.12 percent of new BIZ Experiencess were white, while in 2016 that figure dropped to 55.59 percent. From 1996 to 2016, the percentage of black BIZ Experiencess increased from 8.43 percent to 9.24 percent. Asian BIZ Experiencesship went from 3.42 percent to 7.59 percent. Latino BIZ Experiencesship went from 10 percent to 24.12 percent.

BIZ Experiencess in America are more likely to be foreign born.

Overwhelmingly, BIZ Experiencess in the United States are native born, but that is changing. Twenty years ago, 86.71 percent of new BIZ Experiencess were native born while in 2016 that figure was 70.50 percent. In 1996, 13.29 percent of new BIZ Experiencess were immigrants and in 2016, that number had jumped to 29.5 percent.

BIZ Experiencess are less likely to be veterans.

In 1996, 12.49 percent of new BIZ Experiencess were veterans, but in 2016, that number had decreased to 4.16 percent. According to the Kauffman Foundation, that decline is due to the fact that over the past 20 years there has been a declining share of people with veteran status in the country's working age population.

It seems like there is a startup frenzy, but that isn’t the case.

One of the metrics that the Kauffman Foundation uses to assess the state of BIZ Experiencesship in the country is something called startup density. Kauffman defines it as "the number of startups per 1,000 employer businesses." From 2015 to 2016, that figure went up from 81.6 startups per 1,000 employer businesses to 85.4. Even though there was an upward trend, overall, that figure is on the decline.

From 2006 to 2014, startup density in the top 40 of the biggest metropolitan areas decreased on average by more than 20 percent. And overall startup density today is about 20 percent lower than it was before the Great Recession and has been on a long-term decline since the late 1970s.

The places with the most startup activity may surprise you.

Of the 25 largest states, California was number one for startup activity, followed by Texas, Florida, Arizona and Colorado. For the 25 smallest states, Nevada, Oklahoma, Wyoming, Montana and Idaho were at the top of the heap.

The biggest cities for startup activity were surprising as well. The top five were Miami; Austin, Texas; Los Angeles; San Diego, Calif.; and Las Vegas. The cities that have seen the biggest jump from last year were St. Louis, Cleveland and San Antonio, Texas. So clearly, you don't just have to go to San Francisco or New York City to find a community of thriving BIZ Experiencess.

Nina Zipkin

BIZ Experiences Staff

Staff Writer. Covers leadership, media, technology and culture.

Nina Zipkin is a staff writer at BIZ Experiences.com. She frequently covers leadership, media, tech, startups, culture and workplace trends.

Want to be an BIZ Experiences Leadership Network contributor? Apply now to join.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for BIZ Experiencess to pursue in 2025.

Business News

AI Will Create More Millionaires in the Next 5 Years Than the Internet Did in 2 Decades, According to Nvidia's CEO

Nvidia CEO Jensen Huang said that AI enables people to create new things, generating more opportunities to produce revenue.

Marketing

How to Make Sure ChatGPT Recommends Your Products — Not Your Competitor's

AI is changing how people shop — if you're still relying on SEO, you're already behind. Optimize for AI to stay visible.

Starting a Business

Her Self-Funded Brand Hit $25 Million Revenue Last Year — And 3 Secrets Keep It Growing Alongside Her 'Mischievous' Second Venture: 'Entrepreneurship Is a Mind Game'

Raised in a "very BIZ Experiencesial" family, Tanya Taylor always dreamed of starting a business of her own.

Starting a Business

The One Real Problem You Must Solve to Make Your Startup Succeed

Some of the most successful startups didn't start with a business plan. They started with a problem. More specifically — a personal pain point.

Business News

Chipotle's AI Tool 'Ava Cado' Is Cutting Hiring Time by 75%, According to the Company's CEO

Candidates can now go from application-to-hire in three and a half days. It used to take 12.