New business applications keep rising in Indiana
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Indiana and notable new business growth continue to go together like giant tenderloins and undersized buns.
Why it matters: Business formation rates are an excellent indicator of economic sentiment — few people try to start a company when they foresee bad times ahead, Axios' Alex Fitzpatrick and Alice Feng write.
Driving the news: New business applications across Indiana rose by 13% between December 2022 and December 2023, according to an Axios analysis of seasonally adjusted Census Bureau data.
- That puts Indiana among the top 14 states for new business pursuits last year.
- Throwing it back to before the pandemic, new business applications in the state have increased by more than 95% since 2019.
The big picture: Nationally, Colorado (+115%), North Dakota (+37.7%) and Iowa (+33.7%) had the highest year-over-year change in new business applications between December 2022 and December 2023.
- Georgia (-9.9%), Louisiana (-8.6%) and Mississippi (-6.4%) had the largest decline in growth.
Zoom in: The census data, along with the Indiana Economic Development Corporation's 2023 report, paints a positive picture for those looking to do business in the Hoosier state.
- According to the IEDC, 208 companies committed to locating or expanding in Indiana in 2023, investing more than $28 billion into their operations and creating more than 21,000 new jobs.
- Indiana was also ranked as the second best state to start a business by Forbes Advisor, which praised the state's combination of low taxes, a reasonable cost of living and a large working-age population.
What they're saying: "Our strategic, proactive approach is delivering tangible results, attracting new high-growth industries like semiconductors, electric vehicles and clean energy production to Indiana," Indiana secretary of commerce David Rosenberg said in a statement.
The intrigue: Many of the country's emerging new business hot spots have also seen recent population spikes.
Yes, but: New business applications can only capture the financial mood among Americans with the means to start a company.
- Those less well-off likely have a less rosy view of things.
- Many younger Americans, for example, are stressed out about their finances, while renters are much more likely to say they're in bad financial shape compared to homeowners, per recent findings from our ongoing Axios Vibes/Harris Poll surveys.
Plus: Just because somebody files paperwork to start a business doesn't mean that enterprise ever gets off the ground and hires people.