Census Bureau data shows a slowdown in new Business formation
Yesterday I wrote about how research has shown that new and young (0-5 years) businesses are the huge part of economic growth. Small and new businesses are going to be a huge contributing factor in the recovery of our economic system.
Unfortunately, data from the 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.
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 had 20.1% less applications for new businesses in Week 16 of 2020.
The US census bureau also reported changes in the number of business applications with planned wages. These are businesses that indicate they plan to pay wages and they contribute greatly to 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 as compared to the figures for 2019 for the same weeks.