New businesses grow at record pace in New York and China as Covid creates new opportunities

Syracuse, New York. Applications for new businesses across the state and downtown New York rose to record levels in 2021, fueled by the challenges and opportunities associated with the Covid-19 pandemic.

In 2021, the number of business applications reached the highest level on record in 57 of New York’s 62 counties, including every county in the six counties of Central New York, according to the Census Bureau. Census records for new business applications are from 2005.

The number of applications began to rise substantially in 2020 when the pandemic first broke out, but rose sharply the following year, the most recent year for which census data is available.

In Onondaga County, for example, the number of business applications exceeded 4,100 in 2021, the highest ever. The application rate per 1,000 people in the county increased by more than 35% in 2021, the biggest jump since at least 2005.

The pandemic presented a unique set of circumstances that likely contributed to this increase, said Tom Shriver, executive director of Cornell University’s Center for Regional Economic Development.

Millions of people have lost their jobs and many have likely turned to their own businesses to make up for lost income. Others have undoubtedly been able to see solid ideas for new companies in the turmoil caused by the pandemic, Shriver said.

But perhaps the biggest difference between the recession and the pandemic has been the amount of financial aid provided by the government. This support would be a huge boost to anyone thinking about starting a new venture, Shriver said.

“All of a sudden they have this combination of financial resources and free time,” he said. “I think it kind of creates a little risk cushion for people.”

Hamilton County was the only county in the state to experience a decline in business applications from 2020 to 2021. They fell by about 11%.

The Bronx, Shohari, Schuyler, and Wyoming counties were the only places in New York where 2021 was not the year of the largest increase in filings on record.

Submitting a business application does not mean that the business will survive, succeed, or even launch at all. This is just the first step.

But the number of applications indicates the activity of startups, which in the long run can lead to an overall growth of the business. They also show how much time and attention people in the field devote to starting new companies.

You can see business application data for Onondaga County since 2005 in the chart below. If you can’t see the chart, click here to open this story in a web browser.

Onondaga led all counties in Central New York in applications per 1,000 people in 2021 at 8.82 and in application growth since 2020.

All counties in the CNY were in the middle or bottom of the state’s rankings in terms of applications per 1,000 people. Ranks ranged from 25 for Onondaga County to 57 for Oswego.

Among the major counties in upstate New York, Onondaga was last in terms of the number of applications. Albany was No. 1 with a score of 19.97, making it No. 3 in the state.

Outside of Albany County, the locations with the most statewide business filings were in Lower New York State. New York County (Manhattan) had the highest rate per 1,000 people in 2021 at 33.6. Kings County (Brooklyn) finished second in 20:29.

Applications at both locations are up over 20% compared to 2020.

The highest rates of growth in claims per 1,000 people between 2020 and 2021 statewide were in Albany County (over 62%), Jefferson County (57%), and St. Lawrence County (over 55%).

The spikes of the past few years probably don’t indicate a long-term trend, said John Torrens, professor of entrepreneurial practice and associate department chair at Syracuse University’s Martin J. Whitman School of Management.

“New business structures are cool, but that doesn’t make me think there’s been an explosion in entrepreneurship or innovation,” Torrens said. “The pandemic has been such an exception that the normal rules definitely don’t apply.”

You can see the full business application statistics by state in 2021 and the growth rate in the table below. You can search in the field by entering the full or partial county name. You can also sort each column by clicking on the headings.

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