New Business Creation Trends In Asheville Metro
Johnson Price Sprinkle PA accounting firm recognizes that starting a new business is typically acknowledged as a positive sign in the economy. Business creation trends can be good indicators of entrepreneurial optimism and opportunity. Fortunately, the North Carolina Secretary of State publishes all new business registrations (required by law) for every county in the state. We can use these filings to get an idea of an area’s level of entrepreneurial activity and its underlying trend. And while filing for a new business by itself doesn’t tell us if that business will be successful, it does indicate an optimistic view of the economy from those behind each startup.
So, what is the trend for new business creation in the four-county Asheville metro (Buncombe, Henderson, Haywood, and Madison)? In 2017, a record number of new business filings were made in the Asheville metro (see chart below). Preceded by seven straight years of accelerating growth, there were 3,419 new business filings in 2017; averaging an annual increase of 17 percent or 305 more filings each year. If the current pace continues, 2018 is on track to set another new record.
New Business Filings
Asheville Metro
2008 – June 2018
Source: North Carolina Secretary of State
Includes new Business Corporations, Limited Liability Corporations, Partnerships, Professional Associations and Nonprofits
How does Asheville’s rate of new business creation compare among the state’s fifteen metros? First, looking simply at the number of new business filings, regardless of metro size, shows that all North Carolina metros have experienced an increase in filings over the decade (see charts below). But most notable is the dramatic filing surge in the Charlotte and Raleigh metros. While Asheville saw roughly three times more filings from 2008 to 2017, Raleigh saw four times and Charlotte five times more.
Annual New Business Filings
North Carolina Metros
2008 – 2017
Source: North Carolina Secretary of State
Includes new Business Corporations, Limited Liability Corporations, Partnerships, Professional Associations and Nonprofits
Annual New Business Filings
North Carolina Metros
2008 – 2017
(Without Charlotte & Raleigh Metros)
Source: North Carolina Secretary of State
Includes new Business Corporations, Limited Liability Corporations, Partnerships, Professional Associations and Nonprofits
Comparing the annual rate of new business filings per 10,000 residents adjusts for population size among metros. In 2017, Raleigh metro led the state with 170 new business filings per 10,000 residents (see charts below). Asheville metro places fourth in North Carolina for new business creation with 75 new business filings per 10,000 residents. However, because of its sixth-place ranking for population size, Asheville metro demonstrates a higher relative level of new business creation.
New Business Filings – Rate Per 10,000 Residents
North Carolina Metros
2010 – 2017
Source: North Carolina Secretary of State, US Census Bureau
Includes new Business Corporations, Limited Liability Corporations, Partnerships, Professional Associations and Nonprofits
New Business Filings – Rate Per 10,000 Residents
North Carolina Metros
2010 – 2017
(without Charlotte & Raleigh metros)
Source: North Carolina Secretary of State, US Census Bureau
Includes new Business Corporations, Limited Liability Corporations, Partnerships, Professional Associations and Nonprofits
New Business Filings – Rate Per 10,000 Residents
North Carolina Metros
2017
Source: North Carolina Secretary of State, US Census Bureau
Includes new Business Corporations, Limited Liability Corporations, Partnerships, Professional Associations and Nonprofits
And how does new business creation compare among Asheville metro’s four counties? Comparing the annual rate of new business filings per 10,000 residents shows that all four counties have experienced an increase in their rate of business creation since 2010 (see chart below). In 2017, Buncombe County led the metro with a rate of 89 new business filings per 10,000 residents, while Haywood County experienced the lowest rate at 44 new business filings per 10,000 residents.
New Business Filings – Rate Per 10,000 Residents
Asheville Metro & Individual Counties
2010 – 2017
Source: North Carolina Secretary of State, US Census Bureau
Includes new Business Corporations, Limited Liability Corporations, Partnerships, Professional Associations and Nonprofits
Finally, some may wonder if there are different trends between the creation of for-profit and nonprofit businesses within Asheville metro. New nonprofit business filings have been steadily declining as a proportion of all new business filings over the last decade: from 22 percent in 2008 to just 4 percent in the first half of 2018. Unsurprisingly, the total number of new nonprofit business filings has remained either flat or slightly down since 2008 (see chart below). If the current pace continues, 2018 is on track for Asheville metro to have the third fewest nonprofit filings in a decade.
New Business Filings
Asheville Metro
2008 – June 2018
Source: North Carolina Secretary of State
Includes new Business Corporations, Limited Liability Corporations, Partnerships, Professional Associations and Nonprofits
What is the trend for new business creation in Asheville metro? Over the last eight years, the metro has experienced significant and accelerated growth in the number of new business filings; up an average of 17 percent or 305 additional filings each year. In 2017, Asheville metro had the fourth highest rate of new business filings among all of North Carolina’s fifteen metros. And although the trend is strongly positive for each county within Asheville’s metro, that growth has not been uniform, with Buncombe County the clear lead. Finally, demonstrating a different trendline, new nonprofit businesses filings have remained flat or slightly down over the decade.
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