Utah: Most dynamic economy
Thursday, March 1, 2007
By Scott Schwebke
Standard-Examiner staff
sschwebke@standard.net

Study says entrepreneurs are fueling state growth

SALT LAKE CITY -- Utah has the most dynamic economy in the nation, according to a national study released Wednesday.

The study by The Kauffman Foundation focused on 26 factors in "benchmarking economic transformation" in the United States.

Utah ranked first in the country in "economic dynamism," epitomized by new and fast-growing, entrepreneurial companies, the study says.

"As innovation has become an important determinant of competitive advantage, business start-ups and failures have accelerated," the report says. "In this highly competitive environment, the ability of state economies to rejuvenate themselves through the formation of new, innovative companies is critical to the their economic vitality."

Some factors used in the study to measure economic dynamism included new jobs in fast-growing companies, "job churning" (labor turnover due to new business start-ups and failures) and the number of entrepreneurs starting new companies.

Utah also ranked in the top half of all states in several other areas measured by the study.

In the category measuring "E-government," Utah placed second, behind Michigan, and fourth for "fastest growing firms."

Overall, when the study's 26 factors were averaged Utah ranked 12th among all states, up from 16th in the 2002 survey.

The study is helpful in pointing out where Utah can improve, said Jason Perry, executive director of the Governor's Office of Economic Development.

"The Kauffman Foundation report is one of those carefully researched studies that are helpful in pointing out a state's strengths and weaknesses," Perry said in a written statement. "Utah is already under way in its effort to address those parts of our economy which can be strengthened.

Our headquarters' recruitment effort and our engineering initiatives are focused on the future of our state. Economic development is a dynamic business and we work every day at meeting the challenges of today and building for tomorrow."