PROVIDENCE – Rhode Island has seen a nearly 30% increase in new business applications since prior to the COVID-19 pandemic, the U.S. Chamber of Commerce reports, though amid a nationwide surge it still trails most other states in applications filed per capita.
The Ocean State experienced a 29.6% increase in business filings in 2022 compared to 2019, according to the federal data, including 10,943 applications filed in 2022.
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Drawing from the U.S. Census Bureau’s Business Formation Statistics, the U.S. Chamber of Commerce released its nationwide analysis last week.
While Rhode Island saw a significant rise in new business applications, this boost pales in comparison to the rest of the country: the report ranks Rhode Island 47th in business applications per capita.
Of the state’s applicants, the chamber projects that 11% will become employer businesses, and another 1,150 will have a projected business formation within four quarters.
Providence County included the bulk of applicants, with 7,424 business applications coming from this area in 2021.
Nationwide, applicants broke records in 2021, with 5.4 million new business filings. That figure didn’t hold up in 2022, but still reached 5.1 million filings.
And in 2020, new business filings doubled compared to recent years, according to the World Economic Forum.
The U.S. Chamber of Commerce said many of these new businesses arose from entrepreneurs rising to the challenge of addressing pandemic-related challenges, and that many workers laid off due to COVID-19 impacts turned their hobbies or ideas into businesses.
Many entrepreneurs operate these new businesses from home: According to the chamber, “the number of non-store retailers skyrocketed as individuals sold goods from home.”
The chamber projects that out of the 14.9 million business applications filed from 2020 to 2022, 1.4 million applications will grow into employer businesses.
Compared to Rhode Island, Massachusetts posted a slower four-year growth, with a 24.5% increase in new business applications from 2019 to 2022. But the Bay State ranked one spot higher the Ocean State for 2022 business applications per capita, at 46th in the nation.
Massachusetts entrepreneurs filed 71,469 new business applications in 2022, according to the chamber report, with 7,188 projected business formations in the next four quarters and 10% of applications expected to become employers.
Wyoming led the country in 2022 business applications per capita, with a 120.6% increase in business applications filed in 2022 compared to 2019. In 2022, 41,940 of the state’s residents filed new business applications.
Jacquelyn Voghel is a PBN staff writer. You may reach her at Voghel@PBN.com.
