PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Entrepreneurial Hope: Business Applications Continue at High Levels

By at 15 October, 2021, 9:02 am

by Raymond J. Keating-

One ray of economic hope has persisted not long after the pandemic hit. That is, after suffering big declines when the pandemic first struck, the number of business applications (seasonally adjusted) didn’t just quickly bounce back to previous levels, but skyrocketed beyond where they had been.

As noted in the latest report from the U.S. Census Bureau, business applications for tax ID numbers – a measure of future business formations – registered 431,381 in September. That was up by 0.8 percent compared to August.

More notably, this marks 16 straight months now of applications running far ahead of where they had been before the pandemic struck. (See the following chart.)

For good measure, high-propensity business applications – that is, applications that have a high likelihood of turning into businesses with employees – also continue to run well ahead of pre-pandemic levels (even with a tiny decline in September) at 145,628. (See the following chart.)

America will need re-energized entrepreneurship to drive our economic recovery and expansion. It’s important for federal, state and local elected officials and their appointees to provide policy environments that incentivize and promote such entrepreneurship, which means, for example, tax and regulatory relief, as opposed to increased tax and regulatory burdens.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.

 

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