Louisiana’s Business Environment is Thriving: A Closer Look at the State’s Recent Growth in Business Applications

The state of Louisiana has experienced significant growth in business applications since 2005, ranking among the states with the highest growth rates. Data analyzed by the Federal Reserve Economic Data department shows that Wyoming, Delaware, Mississippi, Georgia, and Louisiana have led the nation in new business applications adjusted for population growth. However, there are some states that have shown the lowest growth rates in the number of new businesses compared to 2005. These states include Nevada, New Hampshire, Maine, Minnesota, and Massachusetts.

According to data scientists from the Federal Reserve, states with low or no corporate and personal state income taxes and privacy laws regarding business ownership tend to attract more business starts. This is likely due to these states offering a more favorable business environment for entrepreneurs looking to start a new venture.

In recent years, business applications in Louisiana have been on a steady decline since January 2024. However, this trend appears to be reversing as the most recent data shows that 6,693 business applications were filed in May 2024. This represents a 14% increase from filings in May 2023. This uptick in business applications indicates a positive trend in the state’s business landscape and suggests that entrepreneurs are starting to see opportunities for success in Louisiana once again.

Overall, it seems that states with a favorable business environment are seeing higher levels of growth when it comes to new business applications. While some states may struggle with declining numbers of new businesses compared to previous years, others like Louisiana appear to be turning things around thanks to their efforts towards creating an attractive environment for entrepreneurs.