The release of these data allows policymakers, analysts and researchers to monitor entrepreneurial activity more closely, providing insights into how business cycles, regional policies, and external events impact business formation on the island.
The next set of Business Formation Statistics for Puerto Rico is scheduled for release Sept. 12.
For the first time, the U.S. Census Bureau has begun publishing monthly data on new business applications in Puerto Rico, offering fresh insights into the island’s entrepreneurial activity.
This development marks a significant milestone for economic analysis and policymaking in Puerto Rico, as it provides real-time data that can influence decisions on regional development and economic strategies, the agency stated.
The new dataset, which is part of the Census Bureau’s Business Formation Statistics (BFS), was launched in March 2024 and includes monthly statistics dating back to July 2004.
The data highlights significant spikes in business applications during key periods, notably a 225% increase from October 2017 to October 2018, following hurricanes Irma and Maria, and a 150% rise from April 2020 to April 2021 amid the global COVID-19 pandemic.
“Many conditions can affect business applications. Events like hurricanes Irma and Maria, which hit Puerto Rico in September 2017, and the global COVID-19 pandemic that began in 2020 can have significant economic impacts on business creation,” said John Darr, author of the article included in the Census Bureau’s “America Counts” online resource library.
BFS is one of the Census Bureau’s newest data products. It began as an experimental release in February of 2018 and became a standard product in December 2021. Monthly Puerto Rico Business Applications are not part of the standard BFS but are released at the same time.
BFS tracks Employer Identification Number (EIN) applications filed in the continental United States and Puerto Rico. Applying for an EIN is often one of the first steps to opening a business, enabling business owners to open a business banking account and hire employees.
The release of these data allows policymakers, analysts and researchers to monitor entrepreneurial activity more closely, providing insights into how business cycles, regional policies and external events impact business formation on the island.
“Keep in mind that someone might apply for an EIN to start a business but never actually open it or, as in the case of a sole proprietorship, never hire any employees,” Darr said.
The Puerto Rico release only contains data for the four Business Application Series, including:
Business Applications (BA): The core business applications series that includes all EIN applications with some exceptions.
High-Propensity Business Applications (HBA): A subset of BA that contains all applications with a high propensity of becoming a business with a payroll, based on various factors. An application is classified as high-propensity when it indicates business activity in specific North American Industry Classification (NAICS) sectors; the intention of hiring employees; a planned date to start paying wages to employees; or that the business is part of a corporation.
Business Applications with Planned Wages (WBA): A subset of HBA that contains all applications that indicate a planned start date for paying wages.
Business Applications from Corporations (CBA): A subset of HBA that contains all applications filed by a corporation or personal service corporation.
The next set of BFS data for Puerto Rico is scheduled for release Sept. 12, the agency stated.
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Publish date : 2024-09-03 22:05:00
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