New Businesses May Be Good News for the Economy

Townsend Asset Management Corp. |

New Businesses May Be Good News for the Economy


After taking a nosedive at the start of the pandemic recession (gold shaded area), business applications rose sharply, peaking in July 2020. Applications have fallen somewhat since then but are still up approximately 84% from their April 2020 low. Businesses that are likely to hire employees — called high-propensity businesses — make up approximately one-third of total applications. Businesses with payroll are considered more likely to power job growth and economic recovery.

Total business applications fell to a low point of 234,838 in April 2020 and peaked at 552,748 in July 2020. They later fell to 432,034 in November 2021. High-propensity business applications, which had held at about 100,000 per year since 2017, dropped to 77,037 in April 2020 before rising to 176,065 in July 2020. As of November 2021, they were at 144,369.

Source: U.S. Census Bureau, 2021 (data for the period January 2017 to November 2021)

This content is developed from third-party sources believed to be providing reliable information, however their accuracy and completeness cannot be guaranteed. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. The investment strategy or strategies discussed may not be suitable for all investors. Investors must make their own decisions based on their specific investment objectives and financial circumstances. This article should not be construed as tax advice. You should always consult with your tax professional regarding specific tax questions and obligations. This material has been prepared by a third party, Broadridge, that is unaffiliated with Townsend Asset Management Corp. and is provided for informational purposes only. The opinions herein may not represent the views of Townsend or its affiliates. Townsend has obtained permission to distribute this material. Townsend Asset Management Corp. is an independent investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about the firm can be found in its Form ADV Part 2, which is available upon request. TAM-22-09