Breaking Stories

US Business Applications Taper Off In June

Applications to start a new U.S. business aren’t spiking as much as usual for the month of June this year.

According to the Commerce Department, business applications were down 9.8 percent last month. The seasonally adjusted number was 448,553, and the Commerce Department noted that the numbers came from business applications for tax identifications.

Broken down, there were 51,543 applications from corporations — a decrease of 1.6 percent from May. Meanwhile, there were 52,325 applications for businesses with planned wages. That was a decrease of 7.6 percent from May.

The Commerce Department also noted that the applications had decreased across the board for all U.S. regions. The biggest was a 12.25 percent drop in the Midwest.

Things were also lower across all industries, with the biggest hit being dealt to mining — which saw a 25.7 percent decline.

There were also notable dips in accommodation and food services, along with administrative and support.

This comes after a sustained period in which the new business applications were surging across the country, even in spite of the spreading pandemic, with a spike in January. In the first month of 2021, the Commerce Department reported that there had been a 42.6 percent increase in new business applications. The seasonally adjusted rate then was 492,133.

That comes after a 2020 in which there were 4.3 million new applications, up from 3.5 million from 2019.

The increase came during one of the worst periods in recent memory for businesses because business founders have been looking strategically at what’s needed. In the case of the pandemic that came from eCommerce, healthcare, retail and financial services, which saw abundant demand.

In addition, joblessness played a part, with out-of-work people becoming entrepreneurs to create their own opportunities in a time of strife.

“Those who have the resources to be online with a high-speed internet connection, as well as some digital literacy, were able to take advantage,” said Maura Shenker, director of Temple University’s Small Business Development Center. “Especially now, service-based businesses like bookkeeping and other services that can be done online without bringing people into your home have been popular.”

What is your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *