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Report ranks Kansas near bottom for business creation

  • The Wichita Eagle
  • Published Thursday, Jan. 30, 2014, at 10:33 a.m.

Kansas ranked as one of the five worst states for business establishment creation between 2009 and 2012, according to a new study.

The study by Career Builder and Economic Modeling Specialists International, which used federal data, showed that the number of business establishments in the state fell 3 percent – a loss of 2,700 establishments, to 79,284 establishments – over those years.

A business establishment is defined as a single physical location that produces some form of economic activity. One company can have multiple establishments.

The report noted that virtually every state lost businesses from 2001 to 2009, as the recession took its toll across the United States. The report attempted to analyze how well states had rebounded.

In Kansas, the steepest declines in business establishments occurred after 2009. In that time frame, big losses were seen in construction and manufacturing establishments.

But the biggest loser overall was a category of miscellaneous service businesses, called “other services,” that includes equipment and machinery repair, promoting or administering religious activities, grant making, advocacy, dry cleaning and laundries, personal care, death care, pet care, photofinishing, temporary parking and dating services. This category fell by almost 2,000 establishments, or 24 percent.

According to the report, states that had the biggest gains in business creation froom 2009 to 2012 included Texas, New York, Illinois, Florida and Washington. States joining Kansas at the bottom of the list were California, Colorado, Michigan, Idaho and New Jersey.

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