20 Cities Experiencing a Surge in New Business Applications

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Editor’s Note: This story originally appeared on Simply Business.

Despite economic headwinds in recent years, including high prices and interest rates, one bright spot has been a surge in new businesses. Across cities nationwide, aspiring and existing entrepreneurs are launching businesses at rates not seen in recent history.

New business applications have surged to unprecedented levels over the past five years.

Despite inflation and increased borrowing costs since 2022, applications have continued to exceed pre-pandemic norms, with 5.45 million applications filed in 2023. Early 2024 figures show a potential year-end total near 5.2 million.

Understanding which areas are experiencing new business growth is useful for both current and aspiring business owners.

High-growth areas often reflect favorable conditions such as supportive local policies, growing populations, and affordability, which can impact a business’s chances of success. This information allows business owners to assess where opportunities may be strongest based on recent activity.

Following is a breakdown of the metropolitan areas experiencing the largest surge in new business applications. This analysis was conducted by Simply Business — a small-business insurance marketplace — using 2019 and 2023 data from the U.S. Census Bureau. For more information, refer to the methodology section.

20. Nashville-Davidson-Murfreesboro-Franklin, TN

Nashville Tennessee traffic
Michael Gordon / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +58.8%
  • Absolute change in new business applications (2019-2023): +13,486
  • New business applications in 2019: 22,925
  • New business applications in 2023: 36,411
  • Estimated employer businesses created from 2019 applications: 1,817
  • Estimated employer businesses created from 2023 applications: 2,433

19. Denver-Aurora-Centennial, CO

Denver, Colorado
EdgeofReason / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +60%
  • Absolute change in new business applications (2019-2023): +29,140
  • New business applications in 2019: 48,549
  • New business applications in 2023: 77,689
  • Estimated employer businesses created from 2019 applications: 3,672
  • Estimated employer businesses created from 2023 applications: 4,383

18. Virginia Beach-Chesapeake-Norfolk, VA-NC

Virginia Beach, Virginia at night.
Jon Bilous / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +60.9%
  • Absolute change in new business applications (2019-2023): +11,561
  • New business applications in 2019: 18,984
  • New business applications in 2023: 30,545
  • Estimated employer businesses created from 2019 applications: 1,366
  • Estimated employer businesses created from 2023 applications: 1,807

17. Charlotte-Concord-Gastonia, NC-SC

Charlotte North Carolina
Kevin Ruck / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +60.9%
  • Absolute change in new business applications (2019-2023): +20,553
  • New business applications in 2019: 33,727
  • New business applications in 2023: 54,280
  • Estimated employer businesses created from 2019 applications: 2,743
  • Estimated employer businesses created from 2023 applications: 3,722

16. Miami-Fort Lauderdale-West Palm Beach, FL

Buildings in Miami
Gang Liu / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +61.4%
  • Absolute change in new business applications (2019-2023): +104,895
  • New business applications in 2019: 170,869
  • New business applications in 2023: 275,764
  • Estimated employer businesses created from 2019 applications: 10,461
  • Estimated employer businesses created from 2023 applications: 13,439

15. San Antonio-New Braunfels, TX

View of downtown San Antonio, Texas.
f11photo / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +62.6%
  • Absolute change in new business applications (2019-2023): +14,390
  • New business applications in 2019: 22,982
  • New business applications in 2023: 37,372
  • Estimated employer businesses created from 2019 applications: 1,921
  • Estimated employer businesses created from 2023 applications: 2,612

14. Phoenix-Mesa-Chandler, AZ

Phoenix, Arizona
f11photo / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +62.6%
  • Absolute change in new business applications (2019-2023): +37,203
  • New business applications in 2019: 59,475
  • New business applications in 2023: 96,678
  • Estimated employer businesses created from 2019 applications: 4,234
  • Estimated employer businesses created from 2023 applications: 6,071

13. Memphis, TN-MS-AR

Memphis Tennessee
Sean Pavone / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +63.7%
  • Absolute change in new business applications (2019-2023): +9,549
  • New business applications in 2019: 14,985
  • New business applications in 2023: 24,534
  • Estimated employer businesses created from 2019 applications: 1,126
  • Estimated employer businesses created from 2023 applications: 1,522

12. Jacksonville, FL

Jacksonville, Florida
Sean Pavone / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +64.5%
  • Absolute change in new business applications (2019-2023): +15,287
  • New business applications in 2019: 23,688
  • New business applications in 2023: 38,975
  • Estimated employer businesses created from 2019 applications: 1,450
  • Estimated employer businesses created from 2023 applications: 1,899

11. Raleigh-Cary, NC

Raleigh, North Carolina
Sean Pavone / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +65.8%
  • Absolute change in new business applications (2019-2023): +11,878
  • New business applications in 2019: 18,040
  • New business applications in 2023: 29,918
  • Estimated employer businesses created from 2019 applications: 1,486
  • Estimated employer businesses created from 2023 applications: 2,094

10. Louisville/Jefferson County, KY-IN

Historic downtown Louisville, Kentucky
Henryk Sadura / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +66.6%
  • Absolute change in new business applications (2019-2023): +8,277
  • New business applications in 2019: 12,432
  • New business applications in 2023: 20,709
  • Estimated employer businesses created from 2019 applications: 988
  • Estimated employer businesses created from 2023 applications: 1,367

9. Tucson, AZ

Tucson
Chris Rubino / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +67.1%
  • Absolute change in new business applications (2019-2023): +5,793
  • New business applications in 2019: 8,637
  • New business applications in 2023: 14,430
  • Estimated employer businesses created from 2019 applications: 615
  • Estimated employer businesses created from 2023 applications: 906

8. Houston-Pasadena-The Woodlands, TX

Downtown Houston, Texas
Sean Pavone / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +68.7%
  • Absolute change in new business applications (2019-2023): +59,356
  • New business applications in 2019: 86,351
  • New business applications in 2023: 145,707
  • Estimated employer businesses created from 2019 applications: 7,217
  • Estimated employer businesses created from 2023 applications: 10,184

7. Austin-Round Rock-San Marcos, TX

Downtown Austin, Texas
Roschetzky Photography / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +72.8%
  • Absolute change in new business applications (2019-2023): +22,372
  • New business applications in 2019: 30,735
  • New business applications in 2023: 53,107
  • Estimated employer businesses created from 2019 applications: 2,569
  • Estimated employer businesses created from 2023 applications: 3,712

6. Orlando-Kissimmee-Sanford, FL

Orlando, Florida
ESB Professional / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +75.3%
  • Absolute change in new business applications (2019-2023): +36,857
  • New business applications in 2019: 48,926
  • New business applications in 2023: 85,783
  • Estimated employer businesses created from 2019 applications: 2,995
  • Estimated employer businesses created from 2023 applications: 4,180

5. Indianapolis-Carmel-Greenwood, IN

Indianapolis, Indiana
Alexey Stiop / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +77.5%
  • Absolute change in new business applications (2019-2023): +18,225
  • New business applications in 2019: 23,524
  • New business applications in 2023: 41,749
  • Estimated employer businesses created from 2019 applications: 1,855
  • Estimated employer businesses created from 2023 applications: 2,638

4. Riverside-San Bernardino-Ontario, CA

Riverside California neighborhood
Matt Gush / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +80.4%
  • Absolute change in new business applications (2019-2023): +27,332
  • New business applications in 2019: 34,014
  • New business applications in 2023: 61,346
  • Estimated employer businesses created from 2019 applications: 4,037
  • Estimated employer businesses created from 2023 applications: 5,672

3. Tampa-St. Petersburg-Clearwater, FL

Tampa, Florida
Ilya Images / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +84%
  • Absolute change in new business applications (2019-2023): +41,205
  • New business applications in 2019: 49,066
  • New business applications in 2023: 90,271
  • Estimated employer businesses created from 2019 applications: 3,004
  • Estimated employer businesses created from 2023 applications: 4,399

2. Fresno, CA

Fresno California
stellamc / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +101.1%
  • Absolute change in new business applications (2019-2023): +6,313
  • New business applications in 2019: 6,243
  • New business applications in 2023: 12,556
  • Estimated employer businesses created from 2019 applications: 741
  • Estimated employer businesses created from 2023 applications: 1,161

1. Sacramento-Roseville-Folsom, CA

California Capitol building in Sacramento
SnapASkyline / Shutterstock.com
  • Percentage change in new business applications (2019-2023): +127.8%
  • Absolute change in new business applications (2019-2023): +23,033
  • New business applications in 2019: 18,023
  • New business applications in 2023: 41,056
  • Estimated employer businesses created from 2019 applications: 2,139
  • Estimated employer businesses created from 2023 applications: 3,796

Methodology

Man analyzing data on a laptop
fizkes / Shutterstock.com

To determine the locations with the largest increase in new business applications, researchers at Simply Business analyzed the latest data from the U.S. Census Bureau’s Business Formation Statistics.

Researchers ranked locations based on the percentage change in new business applications between the annual figures for 2019 and 2023. In the event of a tie, the location with the larger absolute change in applications between these years was ranked higher.

County data was aggregated to metropolitan areas using 2023 metropolitan area delineations. However, due to changes in county definitions between 2019 and 2023, Connecticut metros could not be included in the analysis.

Additionally, the U.S. Census Bureau publishes data on employer business formation rates (within four quarters of the business application) at the state level, but not at the county level. To estimate business formations at the county level, state-level formation rates were applied to county-level business applications statistics.

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