Louisiana’s Business Growth Surges: State Among Top New Business Hubs in the US

Louisiana has seen a significant increase in business applications since 2005, according to a recent analysis by the Federal Reserve Economic Data department. The state’s growth rate in new business applications adjusted for population size is among the highest in the country, alongside Wyoming, Delaware, Mississippi, Georgia, and New Hampshire. In contrast, states such as Nevada, Maine, Minnesota, Massachusetts, and California have experienced the lowest growth rates in new businesses since 2005.

Data scientists at the Federal Reserve suggest that states with low or no corporate and personal state income taxes and strong privacy laws regarding business ownership tend to lead in business starts. Louisiana’s business applications began to rebound in 2024 after a steady decline since January. In May alone, there were 6,693 business applications filed, representing a 14% increase from the previous year.

These findings indicate a positive trend in Louisiana’s business growth environment and suggest that its policies and economic conditions are contributing factors to this growth. As a result of these trends, Louisiana is now positioned as a leader in new business applications across the United States.