Overview
Understanding growth rates in business formation provides crucial insights into economic dynamism and entrepreneurial trends.
Our analysis reveals significant variations across regions and industries, with national growth at +5.1% year-over-year.
Quick Stats
Growth Metrics
Key growth indicators and trends
| Metric | Rate | YoY Change | Trend |
|--------|------|------------|-------|
| Total Applications | +5.1% | +0.8% | 📈 Rising |
| High-Propensity | +4.2% | +0.3% | ➡️ Stable |
| Wage-Paying | +3.8% | -0.2% | 📉 Slowing |
| Industry Range | 15.4% | +2.1% | 📈 Growing |
National Growth Trends
Formation Growth Trends
Track growth rates across regions and time
Regional Growth Analysis
Regional Performance
Regional Growth Comparison
Growth rates by region with high-propensity metrics
| Region | Total Growth | HP Growth | Wage-Paying | Trend |
|--------|--------------|-----------|-------------|--------|
| South | +5.2% | +4.8% | +4.2% | 🚀 Leading |
| West | +4.8% | +4.5% | +3.9% | 📈 Strong |
| Midwest | +4.1% | +3.8% | +3.5% | ➡️ Stable |
| Northeast | +3.9% | +3.6% | +3.2% | ➡️ Stable |
State Leaders by Region
Southern Growth Leaders
- Texas: +6.8% total, +6.2% high-propensity
- Florida: +5.8% total, +5.3% high-propensity
- Georgia: +5.2% total, +4.8% high-propensity
Western Growth Leaders
- Arizona: +5.9% total, +5.4% high-propensity
- Nevada: +5.6% total, +5.1% high-propensity
- Utah: +5.1% total, +4.7% high-propensity
Midwestern Growth Leaders
- Minnesota: +4.3% total, +4.0% high-propensity
- Illinois: +4.2% total, +3.9% high-propensity
- Ohio: +4.1% total, +3.8% high-propensity
Northeastern Growth Leaders
- Massachusetts: +4.1% total, +3.8% high-propensity
- New York: +3.9% total, +3.6% high-propensity
- New Jersey: +3.7% total, +3.4% high-propensity
Industry Growth Analysis
High-Growth Industries
Leading Growth Sectors
Industries with strongest growth in total and high-propensity applications
| Industry | Total Growth | HP Growth | Wage-Paying | Trend |
|----------|--------------|-----------|-------------|--------|
| Management | +19.0% | +15.2% | +12.8% | 🚀 Leading |
| Utilities | +17.7% | +12.8% | +10.5% | 📈 Strong |
| Arts/Entertainment | +16.0% | +11.5% | +9.8% | 📈 Strong |
| Healthcare | +11.7% | +9.2% | +8.4% | 📈 Growing |
| Technology | +10.5% | +8.8% | +7.9% | 📈 Growing |
Industry Growth Patterns
High-Propensity Leaders
- Management Services
- Total Growth: +19.0%
- HP Growth: +15.2%
- Key Drivers: Professional service demand, corporate restructuring
- Utilities Sector
- Total Growth: +17.7%
- HP Growth: +12.8%
- Key Drivers: Infrastructure development, clean energy transition
- Healthcare Services
- Total Growth: +11.7%
- HP Growth: +9.2%
- Key Drivers: Aging population, telehealth expansion
Emerging Growth Sectors
- Technology Services
- Growth Rate: +10.5%
- HP Share: 82%
- Trend: Accelerating
- Professional Services
- Growth Rate: +9.8%
- HP Share: 75%
- Trend: Stable Growth
- Green Industries
- Growth Rate: +9.2%
- HP Share: 68%
- Trend: Emerging
Growth Pattern Analysis
Regional Characteristics
South (+5.2%)
- Highest regional growth rate
- Strong high-propensity share (42%)
- Led by Texas and Florida
- Key sectors: Technology, Professional Services
West (+4.8%)
- Strong technology sector growth
- High wage-paying share (38%)
- Innovation hubs driving growth
- Key sectors: Technology, Healthcare
Midwest (+4.1%)
- Stable manufacturing growth
- Consistent high-propensity rates
- Diversified sector growth
- Key sectors: Manufacturing, Logistics
Northeast (+3.9%)
- Steady professional services growth
- High wage-paying percentage
- Urban center concentration
- Key sectors: Finance, Professional Services
Growth Drivers
Economic Factors
- Market Conditions
- Capital availability: +12% YoY
- Interest rates: Moderate impact
- Economic recovery: Strong influence
- Regional Dynamics
- Population shifts: Major driver
- Business climate: Significant factor
- Infrastructure: Growing impact
- Industry Trends
- Digital transformation: +15% effect
- Market evolution: Rapid change
- Regulatory environment: Mixed impact
Looking Ahead
Growth Projections
- National growth expected to maintain +5.0-5.5% range
- Regional disparities likely to continue
- Industry concentration may increase
- High-propensity share trending upward
Opportunities
- High-growth regions showing sustained momentum
- Emerging industries maintaining strong trajectories
- Cross-regional expansion potential
- Innovation sector acceleration
Challenges
- Regional growth disparities widening
- Industry concentration risks
- Economic uncertainty factors
- Market saturation in key sectors
Methodology
This analysis uses:
- Monthly application data
- Year-over-year calculations
- Regional comparisons
- Industry-specific metrics
- High-propensity tracking
- Wage-paying business monitoring
Data processing includes:
- Growth rate calculations
- Regional aggregation
- Industry classification
- Trend analysis
- Statistical validation
Related Resources
Data updated monthly. Last update: January 10, 2025
