The Kauffman Foundation in their recent summary on entrepreneurship for 2008, highlighted both Pennsylvania and Philadelphia briefly, in a not so positive light.

The states with the lowest entrepreneurial activity rates were Pennsylvania, Missouri, Wisconsin, West Virginia, Iowa and Ohio.

Among the United States’ fifteen largest metropolitan statistical areas, Atlanta had the highest entrepreneurial rate (0.74 percent) in 2008. Philadelphia had the lowest rate (0.16 percent).

There has been a lot of speculation over reasons for this amongst various groups in the area.  Everything from the Philadelphia business tax situation to the historic industry of this area has been suggested as potential reasons for us lagging behind, but the report itself perhaps details some possible reasons.

U.S. entrepreneurship rates increased for the lowest-income-potential and middle-income-potential types of businesses from 2007 to 2008; it decreased for the highest-income-potential types of businesses.

Perhaps we’re just in the highest-income-potential category.  I know optimism and perseverance  in the area and on the street couldn’t be stronger.