Study Finds Michigan Businesses are Thriving, but How do Other States Compare?

Article courtesy of Asana.

Michigan has had a 15.35% increase in the number of active businesses since 2021, indicating that businesses are thriving in this state.
This is 44% higher than the national average increase, which sits at 10.68%.
The study looked at the percentage increase in the number of active businesses in each state from 2021 to 2024 to reveal where businesses are most likely to thrive.

A new study by Asana, the work management platform, reveals which states have the strongest business survival rates based on current growth trends in businesses.

The research analyzed data from the Bureau of Labor Statistics to determine which states experienced the greatest increase in the number of active businesses between December 2021 and September 2024. It also looked at the shorter-term business growth in each state between September 2023 and September 2024.

Michigan findings

Michigan ranks 12th nationally, with a 15.35% increase in businesses from December 2021 to September 2024, growing from 275,636 to 317,953 businesses. This figure is 44% higher than the national average increase, which sits at 10.68%.

The state showed a 2.82% decrease in the number of active businesses in the twelve months between September 2023 and September 2024; however, the state’s longer-term business growth rate is among the best in the US.

The study concluded that businesses in Michigan are likely to thrive, with the number of active businesses increasing at a higher-than-average rate.

Which states have had the highest growth in businesses since 2021?

Rank	State	Businesses registered in December 2021	Businesses registered in September 2024	Percentage increase in the number of businesses	One-year growth rate (September 2023-September 2024)
1	Idaho	82,118	102,838	25.23%	8.98%
2	South Carolina	155,945	192,827	23.65%	7.15%
3	Hawaii	49,528	60,641	22.44%	5.61%
4	Tennessee	191,861	233,274	21.58%	4.60%
5	Maryland	179,847	213,488	18.71%	11.30%
6	Delaware	37,706	44,602	18.29%	1.86%
7	Vermont	28,650	33,521	17.00%	6.16%
8	North Carolina	325,058	379,306	16.69%	0.41%
9	Arizona	191,756	222,329	15.94%	-0.46%
10	Mississippi	78,098	90,490	15.87%	4.01%

Idaho takes the top position with a 25.23% increase in businesses since December 2021, growing from 82,118 to 102,838 businesses. The state added 8,474 new establishments between September 2023 and September 2024 alone, representing an 8.98% increase in just twelve months.

South Carolina ranks second nationally with a 23.65% growth in businesses since December 2021. The state has added 36,882 new establishments over this period, bringing its total to 192,827 businesses. South Carolina maintained a good short-term rate too with a 7.15% increase in new businesses in the past year.

Hawaii secured the third position with a 22.44% increase in businesses since December 2021. Despite its smaller overall business numbers of 60,641, the island state has added 11,113 new establishments in less than three years, demonstrating enormous growth for its size.

Tennessee matches Hawaii with a 21.58% increase in business establishments but ranks fourth due to slight differences in the exact percentage. The state now hosts 233,274 businesses, adding 41,413 new enterprises since December 2021 and 10,259 in the past year alone.

Maryland rounds out the top five with an 18.71% increase since December 2021, but also achieved the best short-term growth of any state with an 11.30% increase between September 2023 and September 2024. The state added 21,669 new establishments in just twelve months.

A spokesperson from Asana commented on the findings:

“There are challenges that face businesses across the country every day, from tax changes to supply costs, all of which play a factor in the survival and growth of businesses in any given area. It’s interesting to see how dramatically some states are seeing businesses grow, but equally as interesting to see how dramatically some states are seeing businesses decline.

“For the states where business growth is significantly lower, it begs the question, how can this be turned around? One thing that is certain is that there may be many more changes for businesses to adapt to in the next year, so it will be fascinating to see how these rankings change by the end of 2026.”

Methodology

This study examines active business establishments in all U.S. states in September 2024 versus December 2021 to identify which states experienced the greatest growth. Data was gathered from the Bureau of Labor Statistics’ reports on county employment and wages, specifically examining the percent change in establishments by state.

Full ranking of the states that have had the highest growth in businesses since 2021

Rank	State	Businesses registered in December 2021	Businesses registered in September 2024	Net Change	Percentage increase in the number of businesses	One-year growth rate (September 2023-September 2024)
1	Idaho	82,118	102,838	20,720	25.23%	8.98%
2	South Carolina	155,945	192,827	36,882	23.65%	7.15%
3	Hawaii	49,528	60,641	11,113	22.44%	5.61%
4	Tennessee	191,861	233,274	41,413	21.58%	4.60%
5	Maryland	179,847	213,488	33,641	18.71%	11.30%
6	Delaware	37,706	44,602	6,896	18.29%	1.86%
7	Vermont	28,650	33,521	4,871	17.00%	6.16%
8	North Carolina	325,058	379,306	54,248	16.69%	0.41%
9	Arizona	191,756	222,329	30,573	15.94%	-0.46%
10	Mississippi	78,098	90,490	12,392	15.87%	4.01%
11	Kentucky	136,947	158,450	21,503	15.70%	3.32%
12	Michigan	275,636	317,953	42,317	15.35%	-2.82%
13	Alabama	142,869	162,453	19,584	13.71%	3.56%
14	West Virginia	55,027	62,566	7,539	13.70%	5.05%
15	California	1,694,313	1,926,284	231,971	13.69%	10.10%
16	Montana	56,820	64,476	7,656	13.47%