Business Formation

Indicator 12:  Business Formation

 

How Does Massachusetts Perform?

Indicator 12:  Business FormationIn 2016 Massachusetts experienced its 7th consecutive year of business establishment growth, with a net gain of 3,653 establishments.  While close to the average annual gain over this period (+4,525 establishments), it represents a 52% decline from the peak of 7,630 net new establishments in 2014.

In 2016, start-up formation from universities, hospitals, research institutions, and technology investment firms in Massachusetts increased to 75. From 2011-2016, Massachusetts has averaged 67 start-ups initiated per year from universities, hospitals, research institutions, and technology investment firms. Of the LTS, only New York and California lead Massachusetts in start-up formation. New York rapidly increased at a 41.0% rate from 2014-2016, climbing to second in the LTS. Both Texas and Pennsylvania worsened in this category by 7.8% and 3.4% respectively, from 2015-2016.