Census Bureau Report Shines a Light on Entrepreneurial Success
If there’s a bat signal for entrepreneurs, it is surely shining in the skies over the Sunshine State.
According to research from The Digital Project Manager, Florida is the most entrepreneurial state in the nation.
The study measured several factors to determine how entrepreneurial a state is and assigning them an Entrepreneurial Index Score. The entrepreneurial indicators include percentage of the population that starts a new business, percentage of start-up still active after a year, number of small businesses per 100,000 people and the growth rate of business applications.
According to the report, Florida boasts the highest percentage of the population that started a business and has the highest number of small businesses per 100,000 people.
But the good news about entrepreneurialism goes beyond the Sunshine State’s business-friendly shores.
According to the U.S. Census Bureau’s latest Business Formation Statistics, business applications were up 1.3% in September compared to August. Business applications are just the first step, and the Census Bureau also looks to the future and calculates projected business formations from the set of applications. While the estimated number of new businesses formed from September’s applications are slightly lower than August, the overall trend indicates robust entrepreneurial growth ahead.
After a big spike in business formation statistics in 2020 – fueled by the global Covid-19 pandemic – there was a slight decrease in 2021. But a recent surge in applications offers practical proof that the U.S. economy has emerged from the pot-pandemic doldrums.
While construction and real estate business formations were off in September, mirroring the impact of high interest rates and the slowing of the housing market, agricultural, mining and retail trades posted strong increases in the potential for new business development.
While most observers are focused on monthly unemployment figures, inflation reports and the quarterly gross domestic product numbers, the Business Formation Statistics provide a picture of the state of early entrepreneurship at the state and national levels.
According to the Census Bureau, the data not only offers an estimate of the potential for new business development, but also data to study the effects of the business cycle on entrepreneurship and more importantly, how local and regional economic development policies impact new business formation. For local governments concerned about economic growth, the monthly reports can provide important feedback on whether or not their plans and programs are working to encourage entrepreneurship and determine whether or not their communities are truly business friendly.