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Covid-19 fueled a surge of new businesses, but the trend is evolving - Dallas Business Journal

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The pandemic-fueled surge in new businesses is still ongoing, but it did lose some steam

"In spite of recessionary fears and labor market uncertainties, many Americans still believe the time is right to start a business,” said Gusto Inc. Economist Luke Pardue. “This new crop of young businesses looks quite different from prior years because who is starting these firms, where they are created, and what they look like continues to evolve, expanding opportunity to more people and places.

While the Census Bureau’s data is based on applications for Employer Identification Numbers, that doesn’t mean every business formed ends up hiring employees. The Census Bureau anticipates that, from the 417,000 new business applications in December, about 30,292 will end up paying payroll taxes within the year, for example.

States in the West, including Wyoming , New Mexico , Colorado , Arizona and Utah . Those states joined Delaware and Florida at the top in year-over-year growth in business formations.

 

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