new business formation

Useful Stats: Net establishment creation by state and establishment size, 2019

Innovations are often born from small businesses, operating with few employees, if any at all, to bring new technologies and processes to market. However, new small businesses frequently fail and are not the only source of innovation. Understanding the regional dynamics of business creation can help leaders better support their regional innovation economies, and this edition of Useful Stats builds on our previous analyses of net establishment creation and net job creation by state and by industry to explore establishment creation by state and by establishment size (as measured by the number of employees) for 2019.

Useful Stats: Top industries by state for net establishment and job creation, 2005-2019

Understanding the industry-level dynamics of business and job creation can help pinpoint which industries in regional economies may be hotspots for innovation activity. This edition of Useful Stats builds on previous SSTI analysis of business and job creation by state and examines data from the Census Bureau’s recently updated Business Dynamics Statistics (BDS) on net establishment and job creation in 2019 at the state and industry levels. The data serves as a useful baseline of where the economy stood prior to the pandemic’s start in 2020. While the national data shows that five industries experienced net establishment losses in 2019, industry trends at the state level vary widely with some states seeing losses across many industries while others experienced losses in only a few. There were also similar national- and state-level trends in net job creation in 2019. This analysis also provides additional context by examining the long-term state trends in these metrics from 2005 to 2019.

Useful Stats: Establishment formations and job creation by state, 1978-2019

Higher levels of business creation can be linked to the presence of innovation in a state through entrepreneurial activity and transitioning to new industries, and this edition of Useful Stats examines data from the Census Bureau’s recently updated Business Dynamics Statistics (BDS) on net establishment formation and the job creation stemming from those establishments in 2019. While figures vary widely among the states, most saw growth in both net establishment creation and net job creation in 2019; this data is prior to the onset of the pandemic in early 2020.

Useful Stats: High-propensity business applications by state, 2006-2020

Recession can drive increases in entrepreneurship as laid off workers look for other opportunities and start their own businesses. Increases in business startup activity throughout the 2020 recession were greater than any time in the 15 years prior. This edition of Useful Stats examines data from the Census Bureau’s Business Formation Statistics (BFS) series covering business initiation activity as indicated by applications for an Employer Identification Number (EIN).

Stats on new business starts may be sending wrong signal

While new business starts this year are outpacing last year’s rate, those numbers may not signal an increase in entrepreneurship as some press coverage is implying. Business formation statistics from the U.S. Census Bureau released yesterday showed a dramatic 77 percent increase in business applications for the third quarter of the year over the second, but a closer look at those applications reveals that many may not survive.

Women-owned businesses on the rise, but still lag in revenue, employee totals

The number of women-owned business has increased significantly in recent years, but more needs to be done to level the playing field to increase the revenue and employee counts of these businesses, according to two recent studies. More venture capital is needed, as well as mentoring, training and opportunities for women of color.

New Business Formation Statistics: Census Bureau updates BFS format, invites user feedback

With the Census Bureau’s July 17 release of the 2019 2nd Quarter update, the bureau’s Business Formation Statistics (BFS) changed format.

Subscribe to RSS - new business formation