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Missouri New Business Formations 2007

New businesses bring industry diversity and job growth to a region and are a major engine for economic growth.  Research has shown a positive relationship between levels of entrepreneurial activity and economic growth across countries.i  

The Missouri Economic Research and Information Center (MERIC) monitors new business formations through the use of its business indicator.  The indicator measures unemployment insurance accounts established in the state.  This allows MERIC to gauge the number of new Missouri businesses by industry as well as by county.

In 2007, Missouri had 14,842 new business formations, an increase from the 2006 total of 14,513. 

Every county in Missouri had new business formations in 2007.  The five counties with the highest number were St. Louis County, Jackson, St. Louis, St. Charles, St. Louis City, and Greene.  Counties encompassing the metro areas of Kansas City, St. Louis, Joplin, Columbia, and Springfield also had high new business formation counts.

Total New Businesses in Missouri, 2007

New Business Formations Missouri Map

Every county in Missouri had new business formations in 2006. The five counties with the highest number were St. Louis County, Jackson, St. Charles, Greene, and Boone. Counties encompassing the metro areas of Kansas City, St. Louis, Joplin, Columbia, and Springfield also had high new business formation counts. 

Total business formation tends to be highest in urban areas that have high population density. The map below shows new business starts per 1,000 people for each county in Missouri. This map is useful because it allows business growth to be standardized by population, making it possible to identify rural counties with high business growth.ii

 

New Businesses in Missouri Counties per 1,000 Population, 2007

New Business Formations per 1000 Missouri Map

Missouri’s new business growth was concentrated in Private Household Employers (14.5%), Professional and Technical Services (11.6%), Administrative and Support Services (8.3%), Specialty Trade Contractors (7.6%), and Food Services and Drinking Places (6.3%).  These industries and their definitions are listed below.   

New Business Formation 2007 Graph 

 

New Businesses in Missouri by Major Economic Sector 2007

New Business Formation by Economic Sector

 

New Businesses by County

Endnotes:
i Reynolds, Paul D., Hay, Michael, Bygrave, William D., Camp, S. Michael, and Autio, Erkko. Global Entrepreneurship Monitor(GEM)2000 Executive Report.(Ewing Marion Kauffman Foundation, 2000).  http://www.esbri.se/gem-rapport.pdf

ii Population data for calculating per 1,000 population figures uses 2006 population estimates from U.S. Census Bureau.


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