U.S. Cities That Have Gained and Lost the Most Businesses
Matthew Gillman | August 24, 2022
Key Takeaways
There are many reasons why some cities see more businesses openings and closures than others. State population, accessibility to major cities, and economic standings all play a large part in how well businesses perform. But which U.S. cities have gained and lost the most businesses over the past few years?
The team at SMB Compass looked at data from the United States Census Bureau to determine which U.S. cities have experienced the most new business openings (births) and business closures (deaths) over the past five years.
Which Cities Have Opened the Most New Businesses?
In 2019, the most recent year data was available, the New York City-Newark-Jersey City metropolitan area saw more than 51,000 new business openings. The New York City area is the most populated in the country and is known for being a popular place for business owners with big dreams to travel to in order to start their organizations. The New York City metro area has been the top place for new business openings since 2015.
Second on the list is the Los Angeles-Long Beach-Anaheim area of California. In 2019, there were more than 36,000 new business openings in this metro area. The Los Angeles area is also a haven for future entrepreneurs who are chasing the American Dream.
Which Cities Have Lost the Most Businesses?
While New York City saw the most new business openings in 2019, it also saw the highest number of closures. In the New York City metro area, 49,200 businesses closed that year. When compared to the number of new businesses opened in 2019, New York City had a net increase of 2,556 businesses.
The Los Angeles area was the second city to lose the most businesses in 2019, with the metro area losing 32,318 businesses. Overall, Los Angeles netted 4,596 businesses during that year.
How Many Small Businesses Are in the U.S.?
According to the U.S. Small Business Administration, as of 2020, there were 31.7 million small businesses in the country. The government defines a small business as a business having fewer than 500 employees. Of these, 81% have no employees and are considered to be “nonemployers.” These are typically businesses run independently, like independent contractors and real estate agents.
Why Do Businesses Close?
Why do businesses close more often in some cities than others? These are some of the most common reasons why businesses close:
- Low sales
- Lack of capital
- Poor business plans
- Lack of demand for goods/services in the area
- Opening another firm/business in a different location
- Owners retiring
- Personal or health reasons
Cities with large populations, like New York City and Los Angeles, often see the highest rate of business turnover. Many entrepreneurs flock to major cities to start their businesses due to the number of potential customers.
Looking to start your own business? There are many options available to help you finance your dream, including business loans.
U.S. Cities That Have Gained the Most New Businesses
2019
Rank | City | Establishment Births |
1 | New York-Newark-Jersey City, NY-NJ | 51,756 |
2 | Los Angeles-Long Beach-Anaheim, CA | 36,814 |
3 | Miami-Fort Lauderdale-West Palm Beach, FL | 21,311 |
4 | Chicago-Naperville-Elgin, IL | 19,970 |
5 | Dallas-Fort Worth-Arlington, TX | 16,787 |
6 | Atlanta-Sandy Springs-Roswell, GA | 14,488 |
7 | Houston-The Woodlands-Sugar Land, TX | 14,286 |
8 | Washington-Arlington-Alexandria, DC-VA | 12,896 |
9 | Philadelphia-Camden-Wilmington, PA-NJ-DE | 11,911 |
10 | San Francisco-Oakland-Hayward, CA | 11,900 |
11 | Boston-Cambridge-Newton, MA | 10,322 |
12 | Seattle-Tacoma-Bellevue, WA | 9,685 |
13 | Phoenix-Mesa-Scottsdale, AZ | 9,626 |
14 | Denver-Aurora-Lakewood, CO | 8,885 |
15 | Tampa-St. Petersburg-Clearwater, FL | 8,290 |
16 | San Diego-Carlsbad, CA | 8,247 |
17 | Orlando-Kissimmee-Sanford, FL | 7,635 |
18 | Riverside-San Bernardino-Ontario, CA | 7,455 |
19 | Detroit-Warren-Dearborn, MI | 7,385 |
20 | Minneapolis-St. Paul-Bloomington, MN | 7,114 |
21 | St. Louis, MO | 6,201 |
22 | Portland-Vancouver-Hillsboro, OR-WA | 6,094 |
23 | Austin-Round Rock, TX | 5,959 |
24 | Charlotte-Concord-Gastonia, NC | 5,930 |
25 | Baltimore-Columbia-Towson, MD | 5,068 |
2018
Rank | City | Establishment Births |
1 | New York-Newark-Jersey City, NY-NJ | 50,793 |
2 | Los Angeles-Long Beach-Anaheim, CA | 35,464 |
3 | Miami-Fort Lauderdale-West Palm Beach, FL | 20,815 |
4 | Chicago-Naperville-Elgin, IL | 19,605 |
5 | Dallas-Fort Worth-Arlington, TX | 16,324 |
6 | Atlanta-Sandy Springs-Roswell, GA | 14,035 |
7 | Houston-The Woodlands-Sugar Land, TX | 13,675 |
8 | Washington-Arlington-Alexandria, DC-VA | 13,141 |
9 | Philadelphia-Camden-Wilmington, PA-NJ-DE | 11,581 |
10 | San Francisco-Oakland-Hayward, CA | 11,284 |
11 | Seattle-Tacoma-Bellevue, WA | 9,984 |
12 | Boston-Cambridge-Newton, MA | 9,929 |
13 | Phoenix-Mesa-Scottsdale, AZ | 9,636 |
14 | Denver-Aurora-Lakewood, CO | 8,538 |
15 | San Diego-Carlsbad, CA | 8,197 |
16 | Tampa-St. Petersburg-Clearwater, FL | 7,960 |
17 | Detroit-Warren-Dearborn, MI | 7,633 |
18 | Riverside-San Bernardino-Ontario, CA | 7,536 |
19 | Orlando-Kissimmee-Sanford, FL | 7,300 |
20 | Minneapolis-St. Paul-Bloomington, MN | 7,202 |
21 | Portland-Vancouver-Hillsboro, OR-WA | 6,328 |
22 | St. Louis, MO | 6,290 |
23 | Austin-Round Rock, TX | 5,868 |
24 | Charlotte-Concord-Gastonia, NC | 5,807 |
25 | Las Vegas-Henderson-Paradise, NV | 5,182 |
2017
Rank | City | Establishment Births |
1 | New York-Newark-Jersey City, NY-NJ | 53,598 |
2 | Los Angeles-Long Beach-Anaheim, CA | 36,316 |
3 | Miami-Fort Lauderdale-West Palm Beach, FL | 21,093 |
4 | Chicago-Naperville-Elgin, IL | 20,910 |
5 | Dallas-Fort Worth-Arlington, TX | 17,072 |
6 | Atlanta-Sandy Springs-Roswell, GA | 14,650 |
7 | Houston-The Woodlands-Sugar Land, TX | 14,491 |
8 | Washington-Arlington-Alexandria, DC-VA | 13,389 |
9 | San Francisco-Oakland-Hayward, CA | 12,187 |
10 | Philadelphia-Camden-Wilmington, PA-NJ-DE | 12,043 |
11 | Boston-Cambridge-Newton, MA | 10,570 |
12 | Seattle-Tacoma-Bellevue, WA | 10,068 |
13 | Phoenix-Mesa-Scottsdale, AZ | 10,030 |
14 | Denver-Aurora-Lakewood, CO | 8,890 |
15 | San Diego-Carlsbad, CA | 8,374 |
16 | Tampa-St. Petersburg-Clearwater, FL | 8,172 |
17 | Minneapolis-St. Paul-Bloomington, MN | 7,946 |
18 | Detroit-Warren-Dearborn, MI | 7,810 |
19 | Riverside-San Bernardino-Ontario, CA | 7,486 |
20 | Orlando-Kissimmee-Sanford, FL | 7,250 |
21 | St. Louis, MO | 7,164 |
22 | Portland-Vancouver-Hillsboro, OR-WA | 6,673 |
23 | Charlotte-Concord-Gastonia, NC | 6,318 |
24 | Austin-Round Rock, TX | 5,954 |
25 | Baltimore-Columbia-Towson, MD | 5,382 |
2016
Rank | City | Establishment Births |
1 | New York-Newark-Jersey City, NY-NJ | 55,628 |
2 | Los Angeles-Long Beach-Anaheim, CA | 37,286 |
3 | Miami-Fort Lauderdale-West Palm Beach, FL | 22,058 |
4 | Chicago-Naperville-Elgin, IL | 21,954 |
5 | Dallas-Fort Worth-Arlington, TX | 16,873 |
6 | Atlanta-Sandy Springs-Roswell, GA | 14,778 |
7 | Washington-Arlington-Alexandria, DC-VA | 14,540 |
8 | Houston-The Woodlands-Sugar Land, TX | 14,501 |
9 | Philadelphia-Camden-Wilmington, PA-NJ-DE | 13,099 |
10 | San Francisco-Oakland-Hayward, CA | 12,794 |
11 | Boston-Cambridge-Newton, MA | 11,103 |
12 | Seattle-Tacoma-Bellevue, WA | 10,093 |
13 | Phoenix-Mesa-Scottsdale, AZ | 9,950 |
14 | Denver-Aurora-Lakewood, CO | 9,043 |
15 | Tampa-St. Petersburg-Clearwater, FL | 8,992 |
16 | Detroit-Warren-Dearborn, MI | 8,672 |
17 | San Diego-Carlsbad, CA | 8,483 |
18 | Minneapolis-St. Paul-Bloomington, MN | 8,336 |
19 | St. Louis, MO | 7,750 |
20 | Orlando-Kissimmee-Sanford, FL | 7,594 |
21 | Riverside-San Bernardino-Ontario, CA | 7,419 |
22 | Portland-Vancouver-Hillsboro, OR-WA | 6,798 |
23 | Austin-Round Rock, TX | 6,122 |
24 | Charlotte-Concord-Gastonia, NC | 5,964 |
25 | Baltimore-Columbia-Towson, MD | 5,656 |
2015
Rank | Metro Area | Establishment Births |
1 | New York-Newark-Jersey City, NY-NJ | 53,286 |
2 | Los Angeles-Long Beach-Anaheim, CA | 35,636 |
3 | Miami-Fort Lauderdale-West Palm Beach, FL | 21,763 |
4 | Chicago-Naperville-Elgin, IL | 21,658 |
5 | Dallas-Fort Worth-Arlington, TX | 15,916 |
6 | Atlanta-Sandy Springs-Roswell, GA | 14,341 |
7 | Washington-Arlington-Alexandria, DC-VA | 14,097 |
8 | Houston-The Woodlands-Sugar Land, TX | 13,775 |
9 | San Francisco-Oakland-Hayward, CA | 12,263 |
10 | Philadelphia-Camden-Wilmington, PA-NJ-DE | 12,046 |
11 | Boston-Cambridge-Newton, MA | 10,223 |
12 | Seattle-Tacoma-Bellevue, WA | 9,770 |
13 | Phoenix-Mesa-Scottsdale, AZ | 9,370 |
14 | Denver-Aurora-Lakewood, CO | 8,737 |
15 | Detroit-Warren-Dearborn, MI | 8,571 |
16 | San Diego-Carlsbad, CA | 8,353 |
17 | Tampa-St. Petersburg-Clearwater, FL | 8,307 |
18 | Minneapolis-St. Paul-Bloomington, MN | 8,041 |
19 | St. Louis, MO | 7,564 |
20 | Riverside-San Bernardino-Ontario, CA | 7,294 |
21 | Orlando-Kissimmee-Sanford, FL | 6,987 |
22 | Portland-Vancouver-Hillsboro, OR-WA | 6,482 |
23 | Charlotte-Concord-Gastonia, NC | 5,702 |
24 | Austin-Round Rock, TX | 5,617 |
25 | Baltimore-Columbia-Towson, MD | 5,453 |
U.S. Cities That Have Lost the Most Businesses
2019
Rank | City | Establishment Deaths |
1 | New York-Newark-Jersey City, NY-NJ | 49,200 |
2 | Los Angeles-Long Beach-Anaheim, CA | 32,218 |
3 | Chicago-Naperville-Elgin, IL | 19,193 |
4 | Miami-Fort Lauderdale-West Palm Beach, FL | 19,115 |
5 | Dallas-Fort Worth-Arlington, TX | 13,915 |
6 | Atlanta-Sandy Springs-Roswell, GA | 12,431 |
7 | Houston-The Woodlands-Sugar Land, TX | 12,151 |
8 | Washington-Arlington-Alexandria, DC-VA | 11,891 |
9 | Philadelphia-Camden-Wilmington, PA-NJ-DE | 10,805 |
10 | San Francisco-Oakland-Hayward, CA | 10,753 |
11 | Boston-Cambridge-Newton, MA | 9,148 |
12 | Seattle-Tacoma-Bellevue, WA | 8,857 |
13 | Phoenix-Mesa-Scottsdale, AZ | 8,288 |
14 | Denver-Aurora-Lakewood, CO | 7,867 |
15 | Detroit-Warren-Dearborn, MI | 7,575 |
16 | San Diego-Carlsbad, CA | 7,267 |
17 | Minneapolis-St. Paul-Bloomington, MN | 7,117 |
18 | Tampa-St. Petersburg-Clearwater, FL | 6,816 |
19 | Riverside-San Bernardino-Ontario, CA | 6,366 |
20 | Orlando-Kissimmee-Sanford, FL | 6,013 |
21 | Portland-Vancouver-Hillsboro, OR-WA | 5,801 |
22 | St. Louis, MO | 5,613 |
23 | Baltimore-Columbia-Towson, MD | 4,968 |
24 | Charlotte-Concord-Gastonia, NC | 4,773 |
25 | Austin-Round Rock, TX | 4,550 |
2018
Rank | City | Establishment Deaths |
1 | New York-Newark-Jersey City, NY-NJ | 50,306 |
2 | Los Angeles-Long Beach-Anaheim, CA | 31,664 |
3 | Chicago-Naperville-Elgin, IL | 19,349 |
4 | Miami-Fort Lauderdale-West Palm Beach, FL | 19,001 |
5 | Dallas-Fort Worth-Arlington, TX | 14,247 |
6 | Washington-Arlington-Alexandria, DC-VA | 12,522 |
7 | Atlanta-Sandy Springs-Roswell, GA | 12,458 |
8 | Houston-The Woodlands-Sugar Land, TX | 12,129 |
9 | Philadelphia-Camden-Wilmington, PA-NJ-DE | 11,274 |
10 | San Francisco-Oakland-Hayward, CA | 10,942 |
11 | Boston-Cambridge-Newton, MA | 9,500 |
12 | Seattle-Tacoma-Bellevue, WA | 8,696 |
13 | Phoenix-Mesa-Scottsdale, AZ | 8,226 |
14 | Denver-Aurora-Lakewood, CO | 7,608 |
15 | Minneapolis-St. Paul-Bloomington, MN | 7,476 |
16 | Detroit-Warren-Dearborn, MI | 7,418 |
17 | San Diego-Carlsbad, CA | 7,233 |
18 | Tampa-St. Petersburg-Clearwater, FL | 6,947 |
19 | St. Louis, MO | 6,280 |
20 | Riverside-San Bernardino-Ontario, CA | 6,113 |
21 | Orlando-Kissimmee-Sanford, FL | 6,002 |
22 | Portland-Vancouver-Hillsboro, OR-WA | 5,465 |
23 | Baltimore-Columbia-Towson, MD | 5,144 |
24 | Charlotte-Concord-Gastonia, NC | 5,003 |
25 | Kansas City, MO-KS | 4,481 |
2017
Rank | City | Establishment Deaths |
1 | New York-Newark-Jersey City, NY-NJ | 51,684 |
2 | Los Angeles-Long Beach-Anaheim, CA | 31,774 |
3 | Chicago-Naperville-Elgin, IL | 20,280 |
4 | Miami-Fort Lauderdale-West Palm Beach, FL | 19,314 |
5 | Dallas-Fort Worth-Arlington, TX | 14,397 |
6 | Houston-The Woodlands-Sugar Land, TX | 12,638 |
7 | Washington-Arlington-Alexandria, DC-VA | 12,485 |
8 | Atlanta-Sandy Springs-Roswell, GA | 12,241 |
9 | Philadelphia-Camden-Wilmington, PA-NJ-DE | 12,054 |
10 | San Francisco-Oakland-Hayward, CA | 11,383 |
11 | Boston-Cambridge-Newton, MA | 9,605 |
12 | Seattle-Tacoma-Bellevue, WA | 8,695 |
13 | Phoenix-Mesa-Scottsdale, AZ | 8,270 |
14 | Detroit-Warren-Dearborn, MI | 7,889 |
15 | Tampa-St. Petersburg-Clearwater, FL | 7,770 |
16 | Minneapolis-St. Paul-Bloomington, MN | 7,453 |
17 | Denver-Aurora-Lakewood, CO | 7,445 |
18 | San Diego-Carlsbad, CA | 7,435 |
19 | St. Louis, MO | 6,930 |
20 | Riverside-San Bernardino-Ontario, CA | 6,185 |
21 | Orlando-Kissimmee-Sanford, FL | 5,988 |
22 | Portland-Vancouver-Hillsboro, OR-WA | 5,586 |
23 | Cleveland-Elyria, OH | 5,454 |
24 | Baltimore-Columbia-Towson, MD | 5,443 |
25 | Austin-Round Rock, TX | 4,930 |
2016
Rank | City | Establishment Deaths |
1 | New York-Newark-Jersey City, NY-NJ | 48,529 |
2 | Los Angeles-Long Beach-Anaheim, CA | 30,178 |
3 | Chicago-Naperville-Elgin, IL | 18,820 |
4 | Miami-Fort Lauderdale-West Palm Beach, FL | 18,071 |
5 | Dallas-Fort Worth-Arlington, TX | 12,540 |
6 | Atlanta-Sandy Springs-Roswell, GA | 11,424 |
7 | Washington-Arlington-Alexandria, DC-VA | 11,418 |
8 | Houston-The Woodlands-Sugar Land, TX | 11,138 |
9 | Philadelphia-Camden-Wilmington, PA-NJ-DE | 10,727 |
10 | San Francisco-Oakland-Hayward, CA | 10,424 |
11 | Boston-Cambridge-Newton, MA | 8,543 |
12 | Seattle-Tacoma-Bellevue, WA | 8,047 |
13 | Phoenix-Mesa-Scottsdale, AZ | 7,514 |
14 | Detroit-Warren-Dearborn, MI | 7,194 |
15 | San Diego-Carlsbad, CA | 6,859 |
16 | Denver-Aurora-Lakewood, CO | 6,832 |
17 | Minneapolis-St. Paul-Bloomington, MN | 6,690 |
18 | Tampa-St. Petersburg-Clearwater, FL | 6,377 |
19 | St. Louis, MO | 5,879 |
20 | Riverside-San Bernardino-Ontario, CA | 5,834 |
21 | Orlando-Kissimmee-Sanford, FL | 5,361 |
22 | Portland-Vancouver-Hillsboro, OR-WA | 5,083 |
23 | Baltimore-Columbia-Towson, MD | 4,781 |
24 | San Jose-Sunnyvale-Santa Clara, CA | 4,218 |
25 | Charlotte-Concord-Gastonia, NC | 4,146 |
2015
Rank | Metro Area | Establishment Deaths |
1 | New York-Newark-Jersey City, NY-NJ | 50,894 |
2 | Los Angeles-Long Beach-Anaheim, CA | 29,975 |
3 | Chicago-Naperville-Elgin, IL | 19,346 |
4 | Miami-Fort Lauderdale-West Palm Beach, FL | 18,202 |
5 | Dallas-Fort Worth-Arlington, TX | 12,971 |
6 | Washington-Arlington-Alexandria, DC-VA | 12,438 |
7 | Atlanta-Sandy Springs-Roswell, GA | 12,014 |
8 | Philadelphia-Camden-Wilmington, PA-NJ-DE | 11,923 |
9 | Houston-The Woodlands-Sugar Land, TX | 11,028 |
10 | San Francisco-Oakland-Hayward, CA | 10,402 |
11 | Boston-Cambridge-Newton, MA | 9,257 |
12 | Phoenix-Mesa-Scottsdale, AZ | 8,081 |
13 | Seattle-Tacoma-Bellevue, WA | 8,002 |
14 | Detroit-Warren-Dearborn, MI | 7,624 |
15 | Minneapolis-St. Paul-Bloomington, MN | 6,980 |
16 | San Diego-Carlsbad, CA | 6,949 |
17 | Denver-Aurora-Lakewood, CO | 6,933 |
18 | Tampa-St. Petersburg-Clearwater, FL | 6,793 |
19 | St. Louis, MO | 5,841 |
20 | Riverside-San Bernardino-Ontario, CA | 5,713 |
21 | Orlando-Kissimmee-Sanford, FL | 5,516 |
22 | Baltimore-Columbia-Towson, MD | 5,138 |
23 | Portland-Vancouver-Hillsboro, OR-WA | 4,963 |
24 | Charlotte-Concord-Gastonia, NC | 4,630 |
25 | Pittsburgh, PA | 4,261 |
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