MarketForce Corp

The election is over. Time to get back to Business (Applications)! Well, folks, the dust has settled on Election Day, and it's time to dust off those business plans! Those entrepreneurs that were sitting on the fence waiting to see which way the wind would blow - what have they decided? The latest Census Bureau Business Formations Statistics report just dropped, and it's got some interesting numbers. As expected, the uncertainty around the election certainly put a damper on new business applications. October saw 424,666 new applications filed, representing a YOY decline of nearly 10%. It was also the 12th softest month we've seen since July 2020, when the post-pandemic boom began and 5% below the monthly average for that time frame. Some other notable facts from this month's report include: ?? Year-to-Date the US saw 4.3 million new business applications, a drop of 5.6% from the first 10 months on 2023. ?? 1.28 million applications were file in the Aug-Oct period - down nearly 9% from the same 3 months in the prior year. ?? The October numbers represented a slight (-0.4%) dip from September. ?? All 4 Census Bureau regions saw YOY declines, with all but the Western region posting declines of 11% or greater. ?? The Southern region registered 11.9% fewer businesses in October ?? Only 5 states saw YOY growth - AK (+7.7%), CA (+5.1%), VT (+1.9%), DE (+1.6%), and WA (+0.6%). ?? California processed the most (45,025) new business applications in October. ?? Utah saw new applications decline 34% YOY - representing the largest percentage decline. So what's next for entrepreneurs? Are you ready to dive back into the entrepreneurial pool or still feeling a bit hesitant? Let's hear your thoughts in the comments below! #Entrepreneurship #SmallBusiness #Election2024 #BusinessApplications

SEPTEMBER BUSINESS APPLICATIONS DOWN 9.4% YEAR-OVER-YEAR The U.S. Census Bureau has released their Business Formation Statistics report for September showing 426,000 applications filed, down more than 9% from a year earlier. - This marks the 5 straight month that all 4 Census regions posted YOY declines. - The Southern region posted its 4 straight month of double digit declines, and we expect October to be heavily impacted by recent weather events. - Only OR, MT, ME and DE posted YOY growth with Montana coming in almost 10% higher than last year. - Among the losers, GA saw the largest YOY decline with 17.7% fewer applications filed. - Year-to-date there have been 3.88 million business applications filed, 222,000 or 5.4% less than last year. With the recent weather events and the lead-up to the 2024 election, October's report is expected to show additional YOY declines, but still expected to come way above the numbers we saw leading up to the last presidential election. Keep an eye on this spot for further updates. #NewBusinessFormations #Economy #BusinessFormationStatistics #Entrepreneurship #BusinessStarts

SMALL BUSINESS OPTIMISM RISES AS ELECTION NEARS - UNCERTAINTY AT RECORD HIGHS The Small Business Optimism Index rose slightly in September, but uncertainty among business owners remains high. Many owners are concerned about future business conditions, including the upcoming presidential election, tax code uncertainty, inflation, and employee shortages. Despite these challenges, some businesses are planning to raise prices and wages to offset costs. However, borrowing remains difficult for many entrepreneurs. Here are some of the key findings of the National Federation of Independent Business (NFIB) September report: ?? The Small Business Optimism Index edged up by 0.3 points in September to 91.5. ??The NFIB Uncertainty Index surged 11 points last month, hitting the highest point on record. ??Inflation remains the top problem facing entrepreneurs with 23 percent of business owners citing high prices. ??A net 25 percent of respondents said they planned to raise their prices in September. ??Among business owners experiencing lower profits, 14 percent blamed the prices of materials. ??Despite the labor market cooling, about one-third of business owners reported they have job openings they cannot fill. ??Over the next three months, a net 23 percent of business owners plan to raise wages. ??A net 12 percent of business owners reported paying a higher rate on their most recent loan. ??While a net eight percent of business owners said their most recent loan was more difficult to secure, only two percent of respondents could satisfy all of their credit needs. ??The amount of entrepreneurs, who reported financing as their top business problem, was unchanged at four percent. ??The recent move by the Federal Reserve to cut interest rates by 0.5% did buoy the construction industry, as mortgage rates began to retreat from from highs not seen in years. With election day less than a month away this will be the last NFIB report before the election. With Small Business Owners accounting for a huge voting block, it will be interesting to see how the candidates policies on taxes and inflation will impact the election. #SmallBusiness #BusinessTrends #NFIB #Election #Economy

CALL IT SOUTHERN HOSPITATLITY If you have been following my monthly posts on the U.S. Census Bureau's Business Formation Statistics (BFS), you might recall that some of the strongest growth is happening in the South. A recent report by CoworkingCafe ranked the 20 Best Places for small business. The report ranks these cities based on such metrics as GDP growth, labor costs and number of business applications. Coming in first on the list was Scottsdale, Arizona which was also one of the "fastest-growing startup cities" in 2022. Based on the monthly numbers we have been seeing, we are not surprised that 6 of the 20 cites are in Florida, with Miami (#2), Orlando (#4), Tampa (#6) and Fort Lauderdale (#7) all making the Top 10. Some might be surprised to see such places as Salt Lake City, Provo and Boise on the list, but these cities saw tremendous population growth during and after the pandemic. That in-migration not only brought the need for new businesses and services to serve the growing the population, but also an increase of entrepreneurs moving from other major population centers across the country. While the South continues to see significant growth in small business formation, it's clear that the entrepreneurial spirit is alive and well in many regions across the United States. As we continue to monitor these trends, it's exciting to see how diverse economies are emerging and providing new opportunities for entrepreneurs and businesses of all sizes. You can read the full report here: https://lnkd.in/eXc7cfRn #newbusinesses #newbusinesstrends #businessformations

As a strong advocate for small business growth and community development, I've been following the incredible momentum within the Hispanic entrepreneurial community. It's truly inspiring to see the passion, innovation, and resilience of these business owners. The rise of Hispanic-owned businesses is not only a testament to the entrepreneurial spirit of the community but also a significant driver of economic growth for both the Hispanic community and the overall U.S. economy. These businesses create jobs, stimulate local economies, and contribute to a more diverse and vibrant business landscape. According to the U.S. Small Business Administration, Latino business ownership is at an all-time high, fueled by a surge in new ventures. This growth is a testament to the entrepreneurial spirit and economic contributions of the Hispanic community. In addition, as highlighted by Aikta Marcoulier, the SBA has been instrumental in supporting Hispanic entrepreneurs through record-breaking loans and federal contract assistance. This commitment to fostering economic opportunity is a critical factor driving the success of Latino-owned businesses. Let's celebrate the achievements of Hispanic entrepreneurs and continue to support their growth. I encourage everyone to learn more about the SBA's resources and how you can contribute to the success of this vibrant community. #HispanicHeritageMonth #SmallBusiness #Entrepreneurship #SBA"

NEW BUSINESS APPLICATIONS CONTINUE TO SHOW Y-O-Y DECLINE AS ELECTION SEASON SHIFTS INTO HIGH GEAR As I have been telling you, we expected to see a noticeable slowing of New Business Applications as we moved closer to the elections, and sadly to say - we were right. The US Census Bureau has released their August Business Formation Statistics report and shows another month in which all four regions posted YOY declines. Here are some of the specifics from the August report: ?? The one positive trend in the report shows that September applications did come in 2.5% higher than August, with 431,928 filed. ?? The Northeast region saw the largest YOY decline, with 9.9% fewer applications filed. ?? Hawaii charted the largest YOY decline, seeing applications drop 18.7% from the prior year. ?? 46 states posted YOY declines, with just Oregon, Montana, Maine and Delaware showing slight declines over August 2023. ?? Montana led the gainers, processing 2,226 new applications in August for a 9% YOY increase. ?? Year-to-date there have been 3.45 million new applications filed, down 5% from 2023. ?? August marks the 7th month of YOY declines. We do expect to see this trend reverse itself once the election results are in, as entrepreneurs who have been sitting on the fence pending the election results, make their decision to move ahead. #newbusiness #trends #smallbusiness #economy

BOOMER BUSINESSES UP FOR GRABS - A MASSIVE OPPORTUNITY FOR THE NEXT GENERATION If you follow my posts, you know that I have a keen interest in the small businesses sector. I've been doing some digging into what is changing the face of small business, and I came across a fascinating trend: a massive transfer of wealth from baby boomers to millennials is currently happening as small business are changing hands. It's a game-changer! In my research, I came across a recent article in the hashtag #Guardian, which noted that boomers are retiring in droves and selling their businesses at an unprecedented rate. With a staggering $10 trillion in business value up for grabs, it's no wonder there's a surge in interest from aspiring entrepreneurs. With more than half of small business owners over the age of 50, this trend is expected to continue to pick up steam. It is estimated that 10,000 boomers retire every day. While high interest rates might give some pause, the potential rewards are enormous. Plus, considering the current low capital gains taxes and estate tax exemptions, the timing couldn't be better for buyers. From the seller's point of view, it is getting more enticing to sell, with the average deal size up 20% from the 2nd quarter of 2023. The buyers, who are right at the average age of those that historically start a business, have honed their skills in the corporate world and are ready to strike out on their own and have more control over their destiny. I'm curious, as a B2B marketer: ? Do you feel that this trend creates an opportunity for your company to land new customers? ? Do you have a strategy in place to market to these new owners of successful businesses? ? Have any of you successfully transitioned from employee to business owner through acquiring an existing business? Share your experiences and advice! Let's make the most of this incredible opportunity. You can read the Guardian article here: https://lnkd.in/eHsGz-aj #generationalwealthtransfer #smallbusiness #entrepreneurship #millennials #boomers #businessownership

JULY NEW BUSINESS FORMATIONS DOWN 11% YEAR-OVER-YEAR ?? The U.S. Census Bureau released their Business Formation Statistics for July and confirmed a continuing slowing in new business formations. July marked the 3rd straight month in which all 4 Census Bureau regions posted YOY declines. It should be noted that we typically see a softening of New Business Registrations in the lead up to a Presidential election. Here are some key findings of this month's report: ?? July saw 420,802 new business registrations filed - down 2.1% from June and 11.5% YOY ??July marks the 6 consecutive month of YOY declines ??All 4 Census Bureau Regions posted monthly and YOY declines ??Every state except for MT, SD and NH saw YOY declines ??The West and South saw the largest YOY drop in registrations We expect to see this trend continue through the Election as potential business owners are sitting on the fence until they can determine what the post-election economic outlook will be. We did see a December spike following the 2012 and 2016 elections. Naturally 2020, was a unique situation as we entered the post-Covid period which saw new business registrations skyrocket. If you are thinking about starting a new business, are you waiting until after the election to take the plunge? #newbusinessformations #smallbuiness #election #entrepreneurs

? SMALL BUSINESS OPTIMISM UP , BUT CHALLENGES REMAIN ??♂? The National Federation of Independent Business (NFIB) released its Small Business Optimism Index for July. While the index topped out at its highest level in more than 2 years, inflation continues to be a major concern. Here are some of the key findings of this week's report: ? NFIB Small Business Optimism Index rose to 93.7 in July, highest since February 2022. ? Inflation remains top business problem for 25% of owners. ? Labor costs and shortages continue to plague small businesses. ? Inventory investment plans are positive for the first time since October 2022. ? Sales expectations are improving but remain pessimistic. ? Price hikes are slowing down but still prevalent. You can read the full report here: https://lnkd.in/eBsu-5b3 #smallbusiness #economy #trends