Ohio trails most states in "entrepreneurial capacity"
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If Ohio wants to boast about its business-friendly climate, it has a lot of work to do.
Driving the news: A new report from Heartland Forward finds that Ohio trails most other states in a study of "entrepreneurial capacity."
- The Arkansas think tank study ranked us 40th.
Why it matters: A healthy entrepreneurial ecosystem is key to creating jobs and elevating standards of living, with Columbus faring better on this front than the rest of Ohio.
Go deeper: Researchers focused on data involving new companies along with business access to investment capital and government grants.
- Just 8% of Ohioans work at a "young firm," or a company founded within the past five years — a low figure indicating the state could do more to foster startup innovation.
- The state is middle of the pack in terms of business research development spending when considering our large population.
- Ohio also ranks among the lower third of states in higher education, with 29% of residents holding at least a bachelor's degree.
Yes, but: Columbus bucks the statewide trend, with hundreds of millions of dollars in startup funding invested here in just Q3 2021.
- Nearly 37% of local adults have at least a bachelor's degree, per the latest U.S. Census data.
- Our area also boasts five companies on the latest Fortune 500 list.
The big picture: Heartland Forward focuses on improving economic performance in a 20-state "heartland" region in the center of America.
- 16 of the lowest 20 positions on the "entrepreneurial capacity" index are heartland states.
The intrigue: Ohio is trying to entice coastal residents and businesses to relocate here, with millions of dollars spent on billboards in cities like Boston, New York and San Francisco.
- The billboards tout Ohio's lower cost of living and 0% state corporate income tax, the Columbus Dispatch reported.
What to watch: Researchers at Heartland Forward tell our Axios NW Arkansas colleagues they plan to publish a similar entrepreneurial index at a city-by-city level in early 2022.
- We'll see how Columbus ranks then.