New business activity dipped in Philadelphia last year
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New business applications fell 16% in the Philadelphia metro area last year.
Why it matters: New business is an important measure of perceived economic health. If people are trying to start new companies in a given city, it's a sign that they're bullish on the area's prospects.
Driving the news: Some 17.3 new business applications per 1,000 residents were filed across the Philly region in 2022, per new Census Bureau and IRS data.
- That number was at 20.6 per 100,000 in 2021.
Between the lines: The word "startup" tends to evoke buzzy Silicon Valley tech ventures. But young companies of all stripes, from stores and restaurants to software and manufacturing firms, play a big economic role.
- As of 2021, more than 66.7 million Americans worked for companies with fewer than 100 employees, and those firms posted nearly $3.6 trillion in annual payroll, per census data.
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, when nearly 5.4 million applications were filed nationwide — 16.2 for every 1,000 residents.
The intrigue: The Southeastern U.S. is a hotbed of new business activity, home to nine of the top 10 major metro areas with the most applications.
- The Miami-Fort Lauderdale, Atlanta and Orlando metro areas took the top spots in 2022.
- The only area outside the Southeast making the top 10: Provo, Utah.
Of note: Many of the hottest spots for new business applications also have booming populations.
- That makes sense, as economic growth and population increases tend to go hand in hand.
Yes, but: A filed application is no guarantee of a healthy, thriving business to follow — but it's undoubtedly a sign of economic optimism.