Business Formation

Indicator 12:  Business Formation


How Does Massachusetts Perform?

Indicator 12:  Business Formation: Net Gain of 2,620 Business Establishments in 2017 97 Start-ups initiated from Universities, Hospitals, Research Institutions, and Technology Investment Firms in 2017 (2nd in LTS)In 2017, Massachusetts experienced its 8th consecutive year of business establishment growth, with a net gain of 2,620 business establishments. While close to the average annual gain over this period (+2,907 establishments), it represents a 66% decline from the peak of 7,630 net new establishments in 2014.

In 2017, start-up formations from universities, hospitals, and research institutions in Massachusetts increased to 97. From 2012-2017, Massachusetts has averaged 75 start-ups initiated per year from universities, hospitals, research institutions, and technology investment firms. Of the LTS, only California leads Massachusetts in start-up formation, with 145 in 2017 and an average of 124 over the 2012-2017 period, while New York rounds out the top three with 85 in 2017. Both California and New York had declines in growth rate from 2016-2017, -2.7% and -5.6% respectively, while Massachusetts had an increase of 29.3%.


Data Source for Indicator 12: BLS Business Employment Dynamics, QCEW, Census Bureau, AUTM, 2010 Kauffman Index of Entrepreneurial Activity