Metro Detroit business activity remains healthy despite decline
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Detroit ranked 25th among large metro areas for new business applications last year despite a 13% drop from 2021.
Driving the news: About 18 new business applications per 1,000 residents were filed across the metro in 2022, per new Census Bureau and IRS data.
- That's more than the national average of 15 applications per 1,000 residents, Axios' Kavya Beheraj and Alex Fitzpatrick report.
Why it matters: New business applications are an important measure of an area's perceived economic health and its potential for growth.
- And fellow Midwest cities Chicago, Columbus and Cleveland all saw rates more in line with the national figure.
The big picture: Just over 5 million new business applications were filed nationwide in 2022, or 15.1 for every 1,000 residents.
- That's down about 6.6% from 2021.
Zoom in: More recent in-state data shows post-pandemic entrepreneurship is holding steady.
- Michiganders submitted more than 12,000 new business applications this March — a 7% increase compared with the same month last year, the Free Press reports.
Between the lines: Many of the hottest spots for new business applications also have booming populations.
- Miami (40.9), Atlanta (31.3) and Orlando (28.7) took the top spots for major metro areas as ranked by new business applications per 1,000 residents in 2022.
- Parts of the Mountain West also had strong showings — the greater Denver area came in at 21.6.
The bottom line: A filed application is no guarantee of a healthy, thriving business to follow — but at the very least it's a sign of economic optimism.