Editor’s Note: This story originally appeared on Self.
The COVID-19 pandemic has been particularly hard on small businesses, which are estimated to employ nearly half of all American workers. A recent Federal Reserve Bank study noted that the pandemic caused an additional 200,000 businesses to close their doors last year, with small businesses comprising the bulk of the difference.
However, it hasn’t been all bad news for the nation’s small businesses. A real-time survey of business applications conducted by the U.S. Census Bureau offers encouraging results: the increase in business shutdowns combined with changes in consumer preferences created gaps for new entrants to fill, resulting in a strong resurgence of new businesses.
From 2019 to 2020, there was a nearly 25% increase in new business applications, and that increase held relatively steady through 2021. About one-third of current applications are considered “high-propensity applications,” or those with a high likelihood of turning into a business with payroll.
The data used in this analysis is from the U.S. Census Bureau. To determine the locations with the largest increase in new business applications since the pandemic, researchers calculated the percentage change in new business applications from 2019 to 2020. In the event of a tie, the location with the higher total change in business applications from 2019 to 2020 was ranked higher.
Here are the metropolitan areas with the largest increase in new business applications since the start of the pandemic.
15. Jacksonville, FL
Percentage change in business applications (2019-2020): +31.8%
Total change in business applications (2019-2020): +7,537
Total business applications in 2020: 31,202
Total business application in 2019: 23,665
14. Fresno, CA
Percentage change in business applications (2019-2020): +32.1%
Total change in business applications (2019-2020): +1,782
Total business applications in 2020: 7,332
Total business application in 2019: 5,550
13. Riverside-San Bernardino-Ontario, CA
Percentage change in business applications (2019-2020): +32.2%
Total change in business applications (2019-2020): +10,944
Total business applications in 2020: 44,887
Total business application in 2019: 33,943
12. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
Percentage change in business applications (2019-2020): +33.4%
Total change in business applications (2019-2020): +25,103
Total business applications in 2020: 100,265
Total business application in 2019: 75,162
11. Virginia Beach-Norfolk-Newport News, VA-NC
Percentage change in business applications (2019-2020): +35.0%
Total change in business applications (2019-2020): +6,683
Total business applications in 2020: 25,783
Total business application in 2019: 19,100
10. Birmingham-Hoover, AL
Percentage change in business applications (2019-2020): +35.3%
Total change in business applications (2019-2020): +4,070
Total business applications in 2020: 15,593
Total business application in 2019: 11,523
9. Charlotte-Concord-Gastonia, NC-SC
Percentage change in business applications (2019-2020): +35.3%
Total change in business applications (2019-2020): +11,879
Total business applications in 2020: 45,487
Total business application in 2019: 33,608
8. Houston-The Woodlands-Sugar Land, TX
Percentage change in business applications (2019-2020): +37.4%
Total change in business applications (2019-2020): +32,185
Total business applications in 2020: 118,183
Total business application in 2019: 85,998
7. Milwaukee-Waukesha, WI
Percentage change in business applications (2019-2020): +37.6%
Total change in business applications (2019-2020): +5,773
Total business applications in 2020: 21,127
Total business application in 2019: 15,354
6. Detroit-Warren-Dearborn, MI
Percentage change in business applications (2019-2020): +48.9%
Total change in business applications (2019-2020): +26,947
Total business applications in 2020: 82,098
Total business application in 2019: 55,151
5. Chicago-Naperville-Elgin, IL-IN-WI
Percentage change in business applications (2019-2020): +49.7%
Total change in business applications (2019-2020): +51,394
Total business applications in 2020: 154,758
Total business application in 2019: 103,364
4. Cleveland-Elyria, OH
Percentage change in business applications (2019-2020): +54.5%
Total change in business applications (2019-2020): +11,302
Total business applications in 2020: 32,045
Total business application in 2019: 20,743
3. New Orleans-Metairie, LA
Percentage change in business applications (2019-2020): +55.6%
Total change in business applications (2019-2020): +10,659
Total business applications in 2020: 29,830
Total business application in 2019: 19,171
2. Atlanta-Sandy Springs-Alpharetta, GA
Percentage change in business applications (2019-2020): +56.8%
Total change in business applications (2019-2020): +73,365
Total business applications in 2020: 202,603
Total business application in 2019: 129,238
1. Memphis, TN-MS-AR
Percentage change in business applications (2019-2020): +77.7%
Total change in business applications (2019-2020): +11,554
Total business applications in 2020: 26,431
Total business application in 2019: 14,877
Methodology
The data used in this analysis is from the U.S. Census Bureau’s Business Formation Statistics. To determine the locations with the largest increase in new business applications since the onset of the COVID-19 pandemic, researchers calculated the percentage change in business applications from 2019 to 2020.
In the event of a tie, the location with the higher total change in business applications from 2019 to 2020 was ranked higher. To improve relevance, only metropolitan areas with at least 100,000 residents were included.
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