Census Bureau data shows a slowdown in new business formation

New and young (0-5 years) businesses account for a huge part of economic growth, as I wrote yesterday. So, to get out of this pandemic-created slump, we might need to rely on creating new businesses.

Unfortunately, on that front, the data does not look too encouraging. Data from the US Census Bureau shows that there has been a slow down in the number of applications for new businesses. The whole nation is facing a decrease in the number of applications compared to last year. This trend, if it continues, will impede the recovery process of the nation.

National Figures 

According to the US Census Bureau, the  United States has seen a deep decline in the total number of Business applications in the last 5 weeks. Compared to week 16 of 2019, The US has had 20.1% fewer applications for new businesses in the same week this year.

Source: The US Census Bureau

This is is the same for business applications with planned wages, which are mostly the businesses that contribute to new jobs and employment. These businesses also faced a decline in the past 6 weeks of this year, from 2019.

Source: The US Census Bureau


The state of Minnesota has faced a similar trend, with a decline in business Applications for weeks 11,12,13,14,15, and 16 of 2020 when compared to the same weeks in 2019.

Source: The Census Bureau

Source: The US Census Bureau

Certainly, there is a lot of uncertainty regarding the economy, especially when it comes to recovery. But this trend if it persists, does not bode well for our post-COVID-19 economy.