Entrepreneurship
In 2022, the number of business start-ups exceeded closures by 31%, ahead of goal but down from record 2021 levels.
Unfavorable movement since the last available data
Benchmark: Maine’s ratio of business start-ups to closures will be positive and equal to or above the national average.
Overview
This entrepreneurship metric compares the number of business establishments that are started in Maine each year with the number that close. It includes any establishment with employees covered by unemployment insurance. A start-up-toclosure ratio greater than 1 means more businesses are being created than closed each year.
In 2022, Maine’s ratio of start-ups to closures was 1.31, meaning 31% more businesses were created (7,716) than closed (5,888). This exceeded the U.S. ratio of 1.21. This was a decline from the COVID spike of 1.68 in 2021; however, the number of business creations remained high—80% above its 2010-2020 average.
The creation of new businesses is a vital economic activity. Entrepreneurship contributes to innovation, creates jobs, and builds wealth. In a vibrant economy, people have the skills to identify and respond to business opportunities, access to capital, supports for starting and scaling businesses, and connections to human capital.
Fig. A
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Ratio of Business Start-ups to Closures
Source: U.S. Bureau of Labor Statistics, Business Employment Dynamics