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Wisconsin’s Low Startup Activity Ranking Could Be Caused By Lack Of Exposure To Field, Researcher Says

Ewing Marion Kauffman Foundation Ranks Wisconsin Last Second Year In A Row For Startup Activity

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For the second year in a row, Wisconsin has ranked last among larger states for startup activity. And what might be hurting Wisconsin is its lack of exposure, said Dane Stangler, vice president of research and policy at the Ewing Marion Kauffman Foundation.

“A lot of people start a business because they’ve been exposed to it or they’ve gotten experience working close up with entrepreneurs,” Stangler said.

The new study by the Ewing Marion Kauffman Foundation analyzed the rate of new entrepreneurs, the number of startup firms for every 1,000 employer businesses and the percentage of entrepreneurs employed before starting a business.

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Wisconsin Gov. Scott Walker said he takes issue with parts of the study.

“If you look at 10 years out, or you look at seven and 10-year cycle, we rank in the top 10 in the nation in both of those in terms of startups that are still in business six years after and startups that are still in business 10 years after,” Walker said.

A startup’s durability is more important than how many a state has, Walker said.

For Wisconsin to improve, state lawmakers could need to look at barriers to entry in the private and public sectors because difficulties to start businesses and pathways into startups could be playing a key role in the state’s low ranking, Stangler said.