Charlotte and Raleigh lead the state in new business applications
Add Axios as your preferred source to
see more of our stories on Google.
The Southeast is a startup hotbed — home to nine of the top 10 metro areas with the most new-business applications for every 1,000 residents last year.
Driving the news: While the Raleigh metro area didn't make the top 10, it wasn't far behind at 26, with 18 applications per 1,000 residents, according to new Census Bureau and IRS data. That's down more than 3% from 2021.
- Durham County has 17.3 applications per 1,000 residents.
Why it matters: The country's population is spreading out, with economic and cultural power surging from the coasts to fast-growing cities.
- The hottest startup locations also have booming populations.
Between the lines: New business applications are an important measure of an area's perceived economic health. If lots of people are trying to start new companies in a given city, it's a sign that they're bullish on the area's prospects.
- 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.
Zoom out: 5 million new-business applications were filed nationwide in 2022 — 15.1 for every 1,000 residents.
- That's down 7% from 2021, when 5.4 million applications were filed — 16.2 for every 1,000 people.
- Miami (40.9), Atlanta (31.3) and Orlando (28.7) were the top metros, as ranked by new-business applications per 1,000 residents last year.
- The only metro outside the Southeast making the top 10: Provo, Utah, at 23.2.
Threat level: The great state of Mecklenburg (Charlotte) beat out Raleigh this round, landing the No. 19 spot.