The global economy is propelled by the growth of small, young, high-growth companies. Typically created and driven by entrepreneurs, these companies are the primary source of new jobs.

States can improve their economic competitiveness by fostering entrepreneurship in high-impact sectors such as information technology, clean technology, health care, and biotechnology.

National surveys of entrepreneurs indicate that the five critical factors that state government can influence are:

• Diversity in sources of capital;
• An enabling culture;
• Strong local networks;
• Supportive infrastructure; and
• Entrepreneur-friendly government.