Fleet Financing

States with the highest number of new small businesses per capita

The last business creation statistics compiled by the Census Bureau and covering the period between August 2020 and July 2021 suggest that the economic devastation caused by the COVID-19 pandemic has done little to dampen American entrepreneurship. On the contrary, these unprecedented times have paved the way for a start-up boom in some states, reversing a decades-long decline in new businesses.

Of course, this apparent wave of innovation does not affect all corners of the country in the same way. Some states are doing better than others. Below is a list of the five states with the highest number of new small businesses per capita.

  1. Wyoming

With 30,280 new business applications or 52.11 per 1,000 people, Wyoming tops the list. The state received 8,512 high propensity business applications, or 14.65 per 1,000 people, while companies with expected salaries accounted for a total of 2,274 applications (3.91 per 1,000 people).

These numbers likely have a lot to do with the fact that Wyoming was ranked as the most tax-efficient state for businesses by 24/7 Wall St. in 2019. Out-of-state investors have used tax preparation services to do the math, then rushed to Wyoming where they bought a lot of goods, especially since the age of social distancing began.

  1. Delaware

Dubbed the “business paradise” for large corporations and small businesses hoping to cut taxes and have access to a nice court system, it’s no wonder Delaware is second on the list. The state saw 41,067 new business applications, or 42.9 per 1,000 people, with the highest propensities totaling 13,578 and those with expected wages totaling 3,432.

Some reasons why entrepreneurs are flocking to Delaware include the state’s training program for unemployed job seekers during the pandemic, large funds invested in small businesses and nonprofits, as well as ” increased investment in broadband infrastructure.

  1. Georgia

Georgia Governor Brian Kemp takes business seriously. He decided to reopen his state in April this year despite serious concerns from health officials and President Joe Biden about the impact of such a move during the pandemic. Nonetheless, Kemp was adamant about protecting small businesses and preserving Georgia’s “Best State for Doing Business” designation for seven consecutive years.

Georgians submitted 338,858 new business applications (32.57 per 1,000 people). 99512 (9.56 per 1.00 people) were high propensity candidates, while 34,589 had forecast salaries. Knowing that 20% of small businesses fail in the first year, it wouldn’t be surprising to see the numbers drop in 2022.

  1. Florida

With a total of 624,894 new business applicants (29.90 per 1,000 people), of which 223,615 were high propensity and 56,602 applicants had expected salaries, Florida is next on the list. In total, 99.8% of all businesses in Florida are small businesses, which employ 41.6% of the workforce in the private sector.

Despite the high ranking, new businesses are struggling to survive amid the growing number of COVID-19 cases statewide. Governor Ron DeSantis has suspended most anti-COVID measures, including the wearing of masks, justifying his decision by stressing the need to help entrepreneurs. With growing uncertainty, now is probably a good time to find the right one insurance providers.

  1. Washington DC

The nation’s capital saw a 23% increase in new businesses between 2019 and 2021, with a total of 17,115 new applications (24.71 per 1,000 people). High propensity applications also increased by 20%, totaling 5,048 (7.29 per 1,000 people), while applicants with expected salaries numbered just over 1,700.

The record numbers make more sense when looking at the amount of money allocated to local businesses as part of the coronavirus relief program. $ 100 million was distributed to hotels, restaurants, retailers and entertainment businesses, while $ 30 million was used to fund child care and outdoor dining infrastructure.

Final result

The top-ranked states did so despite the havoc to their hard-hit economies. The increase in new business applications can be explained by an ambitious entrepreneurial drive to explore new opportunities and overcome difficult times. Meanwhile, states are encouraging them with a large influx of funds. The wave of new small businesses does not necessarily ensure a long-term economic recovery, but even if a significant number fail, those that remain active will provide a crucial boost to a struggling economy.

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