It seems like there’s a new business opening on every corner, yet you also constantly hear about businesses closing their doors forever.
Do certain areas of America see more success with new businesses than others?
According to this graphic from SMBCompass, they do. Their team created it using data from the U.S. Census Bureau’s Business Dynamics Statistics on the Establishment Births and Establishment Deaths in metro areas from 2015-2019. With this data they found the twenty-five metro areas with the most establishment births (aka new businesses opening) and the twenty-five metro areas with the most establishment deaths (aka businesses closing).
So which metros were found at the top of the lists?
Surprisingly, New York and Los Angeles came in at the number one and two spots on both of the lists! While you may raise a brow at that, it makes sense considering that New York City and Los Angeles have the two largest populations in the country. More people means more business opportunities, as well as more entrepreneurs trying to make their business dreams a reality.
In 2019 the New York City metro area had 51,756 new establishments open while another 49,200 closed, netting the city 2,556 new businesses that year. That same year 36,814 new businesses opened in L.A. while another 32,218 businesses closed their doors, leaving the city with 4,596 new businesses.
Although out of the five years of data that was analyzed, 2016 was the best year for new establishments opening in both cities with 55,628 opening in NYC and 37,286 new businesses opening in Los Angeles. This was also the year that each of the cities saw their lowest numbers of business close; with both NYC and L.A. netting just over seven-thousand new establishments.
Check out the graphic to see which other major U.S. cities have had the most businesses open or close over the past five years.