Editor’s Word: This story initially appeared on Merely Enterprise.
Regardless of financial headwinds lately, together with excessive costs and rates of interest, one brilliant spot has been a surge in new companies. Throughout cities nationwide, aspiring and present entrepreneurs are launching companies at charges not seen in latest historical past.
New enterprise functions have surged to unprecedented ranges over the previous 5 years.
Regardless of inflation and elevated borrowing prices since 2022, functions have continued to exceed pre-pandemic norms, with 5.45 million functions filed in 2023. Early 2024 figures present a possible year-end whole close to 5.2 million.
Understanding which areas are experiencing new enterprise development is beneficial for each present and aspiring enterprise house owners.
Excessive-growth areas usually mirror favorable circumstances resembling supportive native insurance policies, rising populations, and affordability, which may influence a enterprise’s probabilities of success. This info permits enterprise house owners to evaluate the place alternatives could also be strongest based mostly on latest exercise.
Following is a breakdown of the metropolitan areas experiencing the biggest surge in new enterprise functions. This evaluation was performed by Merely Enterprise — a small-business insurance coverage market — utilizing 2019 and 2023 information from the U.S. Census Bureau. For extra info, discuss with the methodology part.
20. Nashville-Davidson-Murfreesboro-Franklin, TN
- Proportion change in new enterprise functions (2019-2023): +58.8%
- Absolute change in new enterprise functions (2019-2023): +13,486
- New enterprise functions in 2019: 22,925
- New enterprise functions in 2023: 36,411
- Estimated employer companies created from 2019 functions: 1,817
- Estimated employer companies created from 2023 functions: 2,433
19. Denver-Aurora-Centennial, CO
- Proportion change in new enterprise functions (2019-2023): +60%
- Absolute change in new enterprise functions (2019-2023): +29,140
- New enterprise functions in 2019: 48,549
- New enterprise functions in 2023: 77,689
- Estimated employer companies created from 2019 functions: 3,672
- Estimated employer companies created from 2023 functions: 4,383
18. Virginia Seashore-Chesapeake-Norfolk, VA-NC
- Proportion change in new enterprise functions (2019-2023): +60.9%
- Absolute change in new enterprise functions (2019-2023): +11,561
- New enterprise functions in 2019: 18,984
- New enterprise functions in 2023: 30,545
- Estimated employer companies created from 2019 functions: 1,366
- Estimated employer companies created from 2023 functions: 1,807
17. Charlotte-Harmony-Gastonia, NC-SC
- Proportion change in new enterprise functions (2019-2023): +60.9%
- Absolute change in new enterprise functions (2019-2023): +20,553
- New enterprise functions in 2019: 33,727
- New enterprise functions in 2023: 54,280
- Estimated employer companies created from 2019 functions: 2,743
- Estimated employer companies created from 2023 functions: 3,722
16. Miami-Fort Lauderdale-West Palm Seashore, FL
- Proportion change in new enterprise functions (2019-2023): +61.4%
- Absolute change in new enterprise functions (2019-2023): +104,895
- New enterprise functions in 2019: 170,869
- New enterprise functions in 2023: 275,764
- Estimated employer companies created from 2019 functions: 10,461
- Estimated employer companies created from 2023 functions: 13,439
15. San Antonio-New Braunfels, TX
- Proportion change in new enterprise functions (2019-2023): +62.6%
- Absolute change in new enterprise functions (2019-2023): +14,390
- New enterprise functions in 2019: 22,982
- New enterprise functions in 2023: 37,372
- Estimated employer companies created from 2019 functions: 1,921
- Estimated employer companies created from 2023 functions: 2,612
14. Phoenix-Mesa-Chandler, AZ
- Proportion change in new enterprise functions (2019-2023): +62.6%
- Absolute change in new enterprise functions (2019-2023): +37,203
- New enterprise functions in 2019: 59,475
- New enterprise functions in 2023: 96,678
- Estimated employer companies created from 2019 functions: 4,234
- Estimated employer companies created from 2023 functions: 6,071
13. Memphis, TN-MS-AR
- Proportion change in new enterprise functions (2019-2023): +63.7%
- Absolute change in new enterprise functions (2019-2023): +9,549
- New enterprise functions in 2019: 14,985
- New enterprise functions in 2023: 24,534
- Estimated employer companies created from 2019 functions: 1,126
- Estimated employer companies created from 2023 functions: 1,522
12. Jacksonville, FL
- Proportion change in new enterprise functions (2019-2023): +64.5%
- Absolute change in new enterprise functions (2019-2023): +15,287
- New enterprise functions in 2019: 23,688
- New enterprise functions in 2023: 38,975
- Estimated employer companies created from 2019 functions: 1,450
- Estimated employer companies created from 2023 functions: 1,899
11. Raleigh-Cary, NC
- Proportion change in new enterprise functions (2019-2023): +65.8%
- Absolute change in new enterprise functions (2019-2023): +11,878
- New enterprise functions in 2019: 18,040
- New enterprise functions in 2023: 29,918
- Estimated employer companies created from 2019 functions: 1,486
- Estimated employer companies created from 2023 functions: 2,094
10. Louisville/Jefferson County, KY-IN
- Proportion change in new enterprise functions (2019-2023): +66.6%
- Absolute change in new enterprise functions (2019-2023): +8,277
- New enterprise functions in 2019: 12,432
- New enterprise functions in 2023: 20,709
- Estimated employer companies created from 2019 functions: 988
- Estimated employer companies created from 2023 functions: 1,367
9. Tucson, AZ
- Proportion change in new enterprise functions (2019-2023): +67.1%
- Absolute change in new enterprise functions (2019-2023): +5,793
- New enterprise functions in 2019: 8,637
- New enterprise functions in 2023: 14,430
- Estimated employer companies created from 2019 functions: 615
- Estimated employer companies created from 2023 functions: 906
8. Houston-Pasadena-The Woodlands, TX
- Proportion change in new enterprise functions (2019-2023): +68.7%
- Absolute change in new enterprise functions (2019-2023): +59,356
- New enterprise functions in 2019: 86,351
- New enterprise functions in 2023: 145,707
- Estimated employer companies created from 2019 functions: 7,217
- Estimated employer companies created from 2023 functions: 10,184
7. Austin-Spherical Rock-San Marcos, TX
- Proportion change in new enterprise functions (2019-2023): +72.8%
- Absolute change in new enterprise functions (2019-2023): +22,372
- New enterprise functions in 2019: 30,735
- New enterprise functions in 2023: 53,107
- Estimated employer companies created from 2019 functions: 2,569
- Estimated employer companies created from 2023 functions: 3,712
6. Orlando-Kissimmee-Sanford, FL
- Proportion change in new enterprise functions (2019-2023): +75.3%
- Absolute change in new enterprise functions (2019-2023): +36,857
- New enterprise functions in 2019: 48,926
- New enterprise functions in 2023: 85,783
- Estimated employer companies created from 2019 functions: 2,995
- Estimated employer companies created from 2023 functions: 4,180
5. Indianapolis-Carmel-Greenwood, IN
- Proportion change in new enterprise functions (2019-2023): +77.5%
- Absolute change in new enterprise functions (2019-2023): +18,225
- New enterprise functions in 2019: 23,524
- New enterprise functions in 2023: 41,749
- Estimated employer companies created from 2019 functions: 1,855
- Estimated employer companies created from 2023 functions: 2,638
4. Riverside-San Bernardino-Ontario, CA
- Proportion change in new enterprise functions (2019-2023): +80.4%
- Absolute change in new enterprise functions (2019-2023): +27,332
- New enterprise functions in 2019: 34,014
- New enterprise functions in 2023: 61,346
- Estimated employer companies created from 2019 functions: 4,037
- Estimated employer companies created from 2023 functions: 5,672
3. Tampa-St. Petersburg-Clearwater, FL
- Proportion change in new enterprise functions (2019-2023): +84%
- Absolute change in new enterprise functions (2019-2023): +41,205
- New enterprise functions in 2019: 49,066
- New enterprise functions in 2023: 90,271
- Estimated employer companies created from 2019 functions: 3,004
- Estimated employer companies created from 2023 functions: 4,399
2. Fresno, CA
- Proportion change in new enterprise functions (2019-2023): +101.1%
- Absolute change in new enterprise functions (2019-2023): +6,313
- New enterprise functions in 2019: 6,243
- New enterprise functions in 2023: 12,556
- Estimated employer companies created from 2019 functions: 741
- Estimated employer companies created from 2023 functions: 1,161
1. Sacramento-Roseville-Folsom, CA
- Proportion change in new enterprise functions (2019-2023): +127.8%
- Absolute change in new enterprise functions (2019-2023): +23,033
- New enterprise functions in 2019: 18,023
- New enterprise functions in 2023: 41,056
- Estimated employer companies created from 2019 functions: 2,139
- Estimated employer companies created from 2023 functions: 3,796
Methodology
To find out the places with the biggest improve in new enterprise functions, researchers at Merely Enterprise analyzed the newest information from the U.S. Census Bureau’s Enterprise Formation Statistics.
Researchers ranked places based mostly on the proportion change in new enterprise functions between the annual figures for 2019 and 2023. Within the occasion of a tie, the placement with the bigger absolute change in functions between these years was ranked larger.
County information was aggregated to metropolitan areas utilizing 2023 metropolitan space delineations. Nonetheless, on account of adjustments in county definitions between 2019 and 2023, Connecticut metros couldn’t be included within the evaluation.
Moreover, the U.S. Census Bureau publishes information on employer enterprise formation charges (inside 4 quarters of the enterprise software) on the state degree, however not on the county degree. To estimate enterprise formations on the county degree, state-level formation charges had been utilized to county-level enterprise functions statistics.
