AI-Driven Predictive Analytics for Business Expansion in the U.S.
Start-Up Ecosystem
Affiliations
1
Department of Building Engineering and ConstructioKhulna University of Engineering and Technology, Khulna University of Engineering and Technology, Khulna-9203
Abstract
This study develops AI-driven predictive models to analyze state-level start-up dynamics in the
United States, leveraging historical data on firm entries, exits, job creation, and job destruction
from 2015 to 2024. Using XGBoost as the pri-mary algorithm and logistic regression as a
baseline, the models forecast business expansion patterns, identify high-growth regions, and
evaluate ecosystem sustain-ability. Key features include venture capital incentives, labor market
trends, and regional economic indicators, integrated through robust ETL pipelines. XGBoost
achieved 87% accuracy in classifying high-potential states, with an F1-score of 0.88,
significantly outperforming logistic regression (72% accuracy, F1-score 0.75), as evidenced by
classification reports, confusion matrices, and scatter plots of predicted versus actual growth
scores. Validation via 5-fold cross-validation, paired t-tests (p ¡ 0.05), and RMSE (0.12–0.15)
confirms model reliability. Case studies demonstrate practical impact: a Series C-funded AI firm
reduced labor costs by 35% and secured $3.2 million in incentives by relocating to Colum-bus,
Ohio, while AJE Group’s AWS migration cut ETL processing time by 35%. Findings reveal
Ohio, Texas, and North Carolina as emerging hubs, driven by strong public-private partnerships.
The research bridges gaps in regional pre-dictive analytics, offering policymakers evidencebased incentive strategies and entrepreneurs scalable tools for market entry. Futur...
Keywords:
AI-driven predictive analytics, U.S.
start-up ecosystem, machine learning,
business expansion, job creation
dynamics, regional growth
forecasting, sustainability resilience,
venture capital incentives, ETL
modernization