As more Americans turn to entrepreneurship in the face of the pandemic, Michigan has landed at No. 9 on a list of the top states for new business applications.
A Top Data study posted March 18 compared the number of businesses created in February 2020 to the number created in February 2021 and found that overall, new business creation has increased 39.4% in the U.S. year over year, and that 49 of 50 states saw an increase in business applications in February compared to the same period last year.
The number of new businesses created in Michigan in February 2021 was 12,559, compared to 8,055 in February 2020 — an increase of 55.9%.
“Covid-19 had a profound impact on the lives of people across the globe,” Top Data said in the report. “For many in the U.S. specifically, their personal circumstances have shifted dramatically, and it’s those changing circumstances, combined with a rapidly evolving business environment, that (are) believed to have caused such an incredible spike in new business creation.”
To determine the rankings, Top Data analyzed business applications across each state using business formation statistics verified by the U.S. Census Bureau. The ranking compared February 2020 to February 2021 at the state level.
Mississippi saw the largest proportional increase, with a 103% rise in business applications. Louisiana and Georgia ranked second and third with 88.2% and 82.2% increases, respectively.
West Virginia saw the lowest increase in business applications by percentage, at 10.2%, while Alaska experienced a decline of -2.8% in business creation.