CPI Security Business Minutes

12 States with the Most New Businesses

The World Bank’s 2017 Ease of Doing Business Index ranks the U.S. #6 in the world for business-friendly regulations. Taking this knowledge a step further, CPI Security wanted to understand which states are leading in business generation.

In Q3 2017, approximately 240,000 new businesses were established in the U.S., employing 837,000 people.

With U.S. entrepreneurship on the rise since 2008, CPI Security, a leading provider of business and residential security solutions, examined states generating the most new business growth in recent years. CPI Security researchers verified where the most new businesses have formed since the start of 2017. The team then analyzed the number of new private sector businesses and the total employment by these new businesses using data from the U.S. Bureau of Labor Statistics, Business Employment Dynamics report for the first three quarters of 2017.

Each state's rank was determined by calculating the number of new businesses per 1,000 workers and new business employment per 1,000 workers, with #1 having the most and #51 having the least. While California and Washington, D.C.—both regions with major business and tech centers—top the list, a handful of less-urbanized states—such as Wyoming and Montana—also rank well. Below are the top 12 states with the most new business creation.

The states with the most new businesses:


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Photo Credit: Andrew Zarivny / Alamy Stock Photo

12. Nevada

New businesses per 1,000 workers: 5.03
New businesses total: 7,467
New business employment per 1,000 workers: 17.5
New business employment total: 25,985
Civilian labor force: 1,484,945
Unemployment rate: 4.9%



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Photo Credit: Diego Grandi / Alamy Stock Photo

11. Massachusetts

New businesses per 1,000 workers: 5.25
New businesses total: 19,344
New business employment per 1,000 workers: 15.4
New business employment total: 56,642
Civilian labor force: 3,683,710
Unemployment rate: 3.5%



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Photo Credit: Aurora Photos / Alamy Stock Photo

10. Colorado

New businesses per 1,000 workers: 5.40
New businesses total: 16,477
New business employment per 1,000 workers: 16.5
New business employment total: 50,406
Civilian labor force: 3,049,315
Unemployment rate: 3.0%



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Photo Credit: Sean Pavone / Alamy Stock Photo

9. Florida

New businesses per 1,000 workers: 5.50
New businesses total: 56,091
New business employment per 1,000 workers: 19.8
New business employment total: 201,815
Civilian labor force: 10,193,201
Unemployment rate: 3.9%



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Photo Credit: Zoonar GmbH / Alamy Stock Photo

8. Utah

New businesses per 1,000 workers: 5.52
New businesses total: 8,735
New business employment per 1,000 workers: 17.5
New business employment total: 27,725
Civilian labor force: 1,582,758
Unemployment rate: 3.1%



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Photo Credit: Enrico Della Pietra / Alamy Stock Photo

7. Maine

New businesses per 1,000 workers: 5.66
New businesses total: 3,961
New business employment per 1,000 workers: 14.1
New business employment total: 9,895
Civilian labor force: 700,081
Unemployment rate: 2.7%

 

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Photo Credit: Jon Bilous / Alamy Stock Photo

6. Montana

New businesses per 1,000 workers: 5.99
New businesses total: 3,150
New business employment per 1,000 workers: 14.4
New business employment total: 7,547
Civilian labor force: 525,901
Unemployment rate: 4.1%



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Photo Credit: Panther Media GmbH / Alamy Stock Photo

5. Wyoming

New businesses per 1,000 workers: 6.02
New businesses total: 1,752
New business employment per 1,000 workers: 18.6
New business employment total: 5,417
Civilian labor force: 291,065
Unemployment rate: 3.9%

 


 

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Photo Credit: Charles Knowles / Alamy Stock Photo

4. Idaho

New businesses per 1,000 workers: 6.26
New businesses total: 5,308
New business employment per 1,000 workers: 17.4
New business employment total: 14,716
Civilian labor force: 848,097
Unemployment rate: 2.9%




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Photo Credit: Gino's Premium Images / Alamy Stock Photo

3. Missouri

New businesses per 1,000 workers: 6.57
New businesses total: 19,979
New business employment per 1,000 workers: 18.2
New business employment total: 55,163
Civilian labor force: 3,039,552
Unemployment rate: 3.6%






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Photo Credit: Sean Pavone / Alamy Stock Photo

2. California

New businesses per 1,000 workers: 6.65
New businesses total: 128,893
New business employment per 1,000 workers: 18.5
New business employment total: 357,993
Civilian labor force: 19,379,638
Unemployment rate: 4.3%






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Photo Credit: Charles Knowles / Alamy Stock Photo

1. District of Columbia

New businesses per 1,000 workers: 7.86
New businesses total: 3,174
New business employment per 1,000 workers: 32.5
New business employment total: 13,136
Civilian labor force: 403,773
Unemployment rate: 5.6%





Methodology & full results:

The new business data referenced is from the U.S. Bureau of Labor Statistics, Business Employment Dynamics dataset. The data is for the first three quarters of 2017—the most recent available data—and only private sector firms are included. Labor force statistics and unemployment rates are from the U.S. Bureau of Labor Statistics, Current Employment Statistics (March 2018).

 New businesses total is the total number of establishment births over the period analyzed. New business employment total is the total employment from establishment births over the period analyzed. New businesses per 1,000 workers and New business employment per 1,000 workers were calculated by dividing their respective totals by the Civilian labor force for each state. States were ranked by New businesses per 1,000 workers. In the event of a tie, the state with the most establishment births was ranked higher.

North Carolina, home to CPI Security since 1991, ranked #26 in the country with new business employment per 1,000 workers of 15.9.  A total of 20,529 new businesses were opened in North Carolina during this time period.

 

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