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New Small Business Formation Best Since 2006

Here's good news from our friends at the Kauffman Foundation and the U.S. Census Bureau:  New business formation in 2011 rose for the first time since 2006, growing by the largest percentage increase in nearly a decade, according to the U.S. Census Bureau's latest Business Dynamics Statistics (BDS) report.

New companies with one to four employees comprise the vast majority of new businesses formed each year, accounting for, on average, 86 percent of new firms since the late 1970s in the BDS data.

New companies employing between one and nine employees accounted for 50 percent of jobs created by new companies, which actually represented a decrease from 2010. This highlights the larger relative role of bigger new companies in new job creation.

Of companies less than one year old, those with
  • one to four employees created, on average, more than 1 million jobs per year over the past three decades; those with
  • five to nine employees added, on average, half a million jobs per year.
Sparsely populated states such as North Dakota, Wyoming and West Virginia saw the largest percentage increases, albeit from low bases. Louisiana and Mississippi experienced the largest declines.

The Business Dynamics Statistics (BDS) series compiled by the U.S. Census Bureau tracks the annual number of new businesses (startups and new locations) from 1976 to 2011. More information about the BDS can be found at Business Dynamics 2011

- For more information, visit the: Kauffman Foundation Newsroom


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    Company Formation

  2. I was reading some where about Private Company Formation . Can some one here explain it to me in simple words that what does it mean by private company formation.

  3. Good article. Much useful to starts the business. Thanks you did share with us. I am sure many students will find it useful.


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