Nationwide, aspiring and existing entrepreneurs are launching businesses at rates not seen in recent history—though some locations are more favorable to new business growth than others.
Using the latest data from the U.S. Census Bureau’s Business Formation Statistics, researchers ranked over 380 U.S. metros and all 50 states by each location’s percentage change in new business applications between 2019 and 2023.Here are some key findings from the report:
Key Takeaways, With Data for Georgia
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New business applications surge to unprecedented levels: Nationwide, business applications hovered between 2.5 million and 3.5 million annually for much of the 2000s and 2010s. In 2020, applications spiked to 4.35 million, and exceeded 5.3 million in 2021. 5.45 million applications were filed last year, and early 2024 figures show a potential year-end total near 5.2 million.
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Business-friendly state policies play key role: Wyoming business applications more than tripled during the study period, while Delaware business applications more than doubled. Select Sun Belt and Southern states also rank highly. All boast favorable tax rates, privacy laws, filing requirements, or some combination of the three that appeals to business owners more than locations in the Northeast, Pacific Northwest, or Midwest.
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Georgia sees significant growth in new business applications: In 2019, there were 172,185 new business applications filed in Georgia; in 2023, that figure rose to 277,598. This 61.2% increase is the 15th largest in the nation.
New business applications have surged to unprecedented levels over the past five years. For much of the 2000s and 2010s, business applications hovered between 2.5 million and 3.5 million annually. In 2020, however, applications spiked dramatically, reaching 4.35 million—a roughly 25% increase from the previous year. This trend accelerated further in 2021, with applications exceeding 5.3 million, and has since stabilized.
According to Simply Business Senior Insights Manager, Hunter Threadgill, Ph.D, “Small businesses are the lifeblood of the American economy.” On what this means for aspiring small business owners, he continued, “These trends highlight what we’re seeing as an increase in new opportunities for individuals, families, and communities.”
The economic shifts brought on by the pandemic spurred a renewed wave of entrepreneurship, fueled by the rise of remote work, digital transformation, and shifting consumer demands. Despite inflation and increased borrowing costs since 2022, applications have continued to exceed pre-pandemic norms, with 5.45 million applications filed in 2023. Early 2024 figures show a potential year-end total near 5.2 million.
For the full report visit www.simplybusiness.