Jul 18, 2023 - Business

Analysis: Richmond is Virginia's hub for startups

New business applications in Virginia, 2022
Data: U.S. Census; Map: Kavya Beheraj/Axios

Richmond has the second-highest rate of new business license applications in the state in 2022, according to new Census Bureau and IRS data.

Why it matters: 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, report Axios' Alex Fitzpatrick and Kavya Beheraj.

By the numbers: The city saw 23.2 new business applications per 1,000 residents in 2022.

  • Richmond came in just behind Petersburg, which took the top spot with 23.9 applications per 1,000 residents.

Zoom out: The metro area as a whole, which includes both cities, only came in 36th nationally.

Yes, but: We still edged out Hampton Roads, which came in 38th.

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