New Report Shows Increased Startup Activity and Vitality Across Northwest Arkansas
BENTONVILLE, Ark. (August 13, 2025) — A new report released by the Walton Family Foundation (WFF) reveals continued momentum in entrepreneurship support across Northwest Arkansas, underscoring the region's evolving role as a hub for business innovation. The report, Entrepreneurial Climate in Northwest Arkansas: A Comparison Across Peer Regions, was conducted by Dr. Robert Fairlie, a leading economist from UCLA and developer of the Kauffman Foundation’s Indicators of Entrepreneurship. The study offers a comprehensive analysis of business ownership and startup vitality across comparable metropolitan regions.
Key findings include:
- Startups account for 37.2% of the region’s businesses, which is above both the national average (35.3%) and the Arkansas state average (31%).
- The region’s opportunity entrepreneurship rate—measured by the ratio of business ownership to unemployment—is on par with that of peer metropolitan statistical areas (MSAs).
- Business establishment growth is strong, particularly among young firms (under five years), with survival rates above national and state averages.
- Northwest Arkansas business ownership rates remain lower than national and aspirational averages, but are steadily increasing.
“These trends reflect the grit and creativity that define Northwest Arkansas,” said Robert Burns, director of the Walton Family Foundation’s Home Region Program. “While there’s more work to do as we continue to build our local business community, the increase in firm survival and establishment growth is a sign that local entrepreneurs are not just taking risks, they’re building staying power.”
The analysis positioned Northwest Arkansas alongside cities like Austin, Texas; Des Moines, Iowa; Durham, N.C.; Madison, Wis.; Provo, Utah; and Raleigh, N.C., offering insight into how the region compares in new business creation, sustainability and growth. In particular, the report notes a marked increase in the young firm growth rate, from 4.9% in 2018 to 6.7% in 2021, which outpaces nearly all benchmark cities except Provo.
“These findings help us better understand where our regional ecosystem is strong and where it needs support, especially when it comes to supporting first-time founders and expanding access to capital and mentorship,” said Yee-Lin Lai, the senior program officer focused on advancing the region's entrepreneurial ecosystem for the Walton Family Foundation’s Home Region Program. “The foundation supported several local accelerator programs and other entrepreneurial initiatives in recent years, and it’s rewarding to see those efforts translating into tangible growth across the region’s startup landscape.”
According to the authors, robust data on entrepreneurship can serve as both a progress benchmark and a planning tool for future growth.
About the Walton Family Foundation
The Walton Family Foundation is, at its core, a family-led foundation. Three generations of the descendants of our founders, Sam and Helen Walton, and their spouses work together to lead the foundation and create access to opportunity for people and communities. We work in three areas: improving education, protecting rivers and oceans and the communities they support and investing in our home region of Northwest Arkansas and the Arkansas-Mississippi Delta. To learn more, visit waltonfamilyfoundation.org and follow us on Facebook, LinkedIn, Instagram and X.