Record Business Creation Seen in Presidential Battleground State

(Bloomberg) -- Since President Trump was elected, business applications are thriving in New Mexico.

Business applications are up 29% in New Mexico. Georgia, Arizona, North Carolina and Montana round out the top five states. The rate of growth in Washington DC is second only to New Mexico.

Newly released data from the U.S. Census Bureau shows that 866,033 applications to form a business were filed in the second quarter, an increase of 0.8% compared to the first quarter of 2019. Based on the number of applications, an estimated 78,952 new business startups with payroll tax liabilities are projected to be formed within 4 quarters of the application filing, and 95,973 in two years.

The data show that the most robust growth will occur in the Midwest, followed by the South.

The business formation statistics show twelve states reached a record level, including several states that are seen as competitive states in the 2020 U.S. Presidential election. States with record applications are: Georgia, Arizona, North Carolina, Maryland, South Carolina, Pennsylvania, Ohio, New Jersey, Virginia, Texas, and New York.

Kansas is the only state with fewer application than the fourth quarter of 2016. Florida has led all states in business applications for the last five years.

To contact the reporter on this story: Alex Tanzi in Washington at atanzi@bloomberg.net

To contact the editors responsible for this story: Alex Tanzi at atanzi@bloomberg.net, Wei Lu

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