The Business Count Growth Calculator: Establishment Growth Rates (2018-2022)

What if you could see that California has 1.02 million establishments in 2022, while Wyoming has just 23,196—and calculate exactly how much each market has grown since 2018? This Business Count Growth Calculator reveals establishment growth rates over time—and how you can position yourself in markets with the strongest expansion patterns.

The data shows dramatic differences: total establishments range from 1.02 million in California to 23,196 in Wyoming—a 44x difference. This isn’t just about current counts—it’s about understanding growth rates, market expansion, and location opportunities that directly impact your market entry and expansion strategy.

Note: Full growth rate calculations (2018-2022) require historical data from multiple years. This analysis uses 2022 establishment counts to indicate current market size and growth potential. For precise growth rate calculations, combine 2022 data with historical CBP data from 2018-2021.

Calculate business count growth rates to see establishment growth over time. This tool

This analysis examines County Business Patterns (CBP) data from the U.S. Census Bureau to calculate business count growth rates—establishment growth over time (2018-2022) by industry and location, revealing market expansion patterns. You’ll discover which markets have the highest growth rates, how establishment counts have changed over time, and where opportunities exist for businesses in expanding markets.

What You’ll Discover:

• State rankings by total establishments (2022 current market size indicators)
• Growth rate calculation methodology for establishment growth over time
• Location-specific growth patterns revealing market expansion by state
• Market expansion analysis by industry and location
• Growth rate indicators for strategic location decisions

Why This Matters: Understanding business count growth rates helps you identify expanding markets, assess market expansion potential, and make strategic location decisions. Markets with high growth rates indicate expanding opportunities and increasing business activity.

Note: Full growth rate calculations (2018-2022) require historical data from multiple years. This analysis uses 2022 establishment counts to indicate current market size and growth potential. For precise growth rate calculations, combine 2022 CBP data with historical data from 2018-2021.

Establishment Counts Vary Dramatically by Location

The Numbers: Total establishments range from 1,023,181 in California to 23,196 in Wyoming—a 44x difference. This means California has 44x more establishments than Wyoming.

So What? Different locations show dramatically different establishment counts, indicating vastly different market sizes. Understanding these patterns helps you identify where large markets exist and where growth potential may be highest.

How to Use This: If you’re entering a market, markets with high establishment counts (500,000+) like California (1.02 million) indicate massive markets. However, growth rates require historical data. Always combine current counts with historical data to calculate true growth rates.

Growth Rate Calculations Reveal Market Expansion

The Numbers: To calculate growth rates, compare 2022 establishment counts to historical data (2018-2021). Markets with increasing counts show positive growth, while markets with declining counts show negative growth.

So What? Growth rates indicate market expansion. Markets with high growth rates (5%+ annually) indicate expanding markets with increasing business opportunities. Markets with negative growth rates may indicate contracting markets.

How to Use This: Target markets with positive growth rates for expanding opportunities. Calculate growth rates by comparing 2022 counts to historical data. Markets with high growth rates offer expanding opportunities and increasing business activity.

Location Strategy Must Account for Growth Patterns

The Numbers: The difference between the highest-count state (California, 1.02 million) and lowest-count state (Wyoming, 23,196) is 44x, meaning dramatically different market sizes and potentially different growth patterns.

So What? Growth patterns directly impact your market entry strategy. Markets with high growth rates offer expanding opportunities, while markets with low or negative growth may indicate contracting opportunities. Your location choice should prioritize markets with positive growth rates.

How to Use This: For businesses seeking expanding markets, target markets with positive growth rates (calculated from historical data). For businesses requiring proven market size, high-count markets (500,000+ establishments) often offer better validation.

Red Flags

• Negative Growth Rates: Markets with declining establishment counts may indicate contracting markets with decreasing opportunities
• Very Low Current Counts with Declining Trends: Markets with low counts and declining trends may signal market contraction
• Count-Growth Mismatch: Markets where counts are high but growth is negative may indicate market saturation

Green Lights

• Positive Growth Rates (5%+ annually): Indicate expanding markets with increasing business opportunities
• High Current Counts with Positive Growth: Markets with high counts and positive growth offer both market size and expansion opportunity
• Consistent Growth: Markets with consistent positive growth over multiple years signal stable expansion
• Diverse Growth Distribution: Markets with growth across multiple industries offer stability and multiple opportunity sources

How to Use This Data

Follow this step-by-step process to calculate growth rates and make data-driven location decisions:

Step 1: Gather Historical Establishment Data

To calculate growth rates (2018-2022), gather establishment counts for multiple years:

• 2022 Data: Use current CBP data for 2022 establishment counts
• Historical Data: Obtain CBP data for 2018-2021 to compare against 2022
• Industry-Specific: Use NAICS-filtered data for your specific industry if needed

Action: Create a spreadsheet with all candidate locations. List establishment counts for 2018-2022 in each. This enables growth rate calculations.

Step 2: Calculate Growth Rates

Use the growth rate formula for each location:

• Growth Rate Formula: ((2022 Counts - 2018 Counts) ÷ 2018 Counts) × 100
• Annual Growth Rate: Divide total growth rate by number of years (4 years for 2018-2022)
• Growth Ranking: Rank locations by growth rate to identify fastest-growing markets

Action: For each candidate location, calculate growth rate from 2018-2022. Rank by growth rate to identify expanding markets.

Step 3: Assess Market Expansion Potential

High growth rates indicate expanding markets:

• Very High Growth (10%+ annually): Indicates rapidly expanding markets
• High Growth (5-10% annually): Indicates expanding markets with strong growth
• Moderate Growth (2-5% annually): Indicates steady expansion
• Low or Negative Growth (<2% or negative): May indicate stable or contracting markets

Action: For each candidate location, assess expansion potential based on growth rate. Prioritize markets with positive growth (5%+ annually) for expanding opportunities.

Step 4: Compare Growth vs. Market Size

Balance growth rates with market size:

• High Growth, Small Market: May offer expansion opportunity but limited current size
• Moderate Growth, Large Market: Offers both market size and expansion opportunity
• High Growth, Large Market: Offers maximum opportunity with both size and expansion

Action: Create a decision matrix scoring each location on: growth rate (40%), market size (30%), and business climate (30%).

Step 5: Make Your Location Decision

Combine growth rate analysis with other factors (business climate, costs) to choose your location.

Action: Create a final decision matrix scoring each location on: growth rate (30%), market size (30%), business climate (20%), and personal fit (20%).

Common Use Cases

Scenario 1: Seeking Expanding Markets → Focus on markets with high growth rates (5%+ annually). These markets offer expanding opportunities and increasing business activity.

Scenario 2: Balanced Growth and Size → Target markets with moderate-to-high growth (3-7% annually) and substantial market size (200,000+ establishments). These markets offer both expansion and market size.

Scenario 3: Rapid Expansion Opportunity → Consider markets with very high growth rates (10%+ annually). These markets offer rapidly expanding opportunities but may require careful market validation.

Scenario 4: Risk-Averse Strategy → Focus on markets with moderate growth (2-5% annually) and large market size (500,000+ establishments). These markets offer steady expansion with proven market size.

Questions to Ask Yourself

• How important is growth rate vs. market size for my business?
• Do I need rapidly expanding markets (10%+ growth) or is moderate growth (3-5%) sufficient?
• What market size do I need, and which markets offer that size with positive growth?
• Am I entering a validated expanding market or an unvalidated one?

Action Items Checklist

• Gather historical establishment data (2018-2022) for each candidate location
• Calculate growth rates using the formula: ((2022 - 2018) ÷ 2018) × 100
• Rank locations by growth rate to identify fastest-growing markets
• Assess market expansion potential based on growth rate levels
• Compare growth rates with market size to identify balanced opportunities
• Create a decision matrix scoring each location on growth rate and other factors
• Consult with Business Initiative for growth rate analysis and location strategy guidance

Industry-Specific Recommendations

Technology Services (NAICS 51): Target markets with high growth rates (5%+ annually) in tech hubs. Technology businesses benefit from expanding markets with increasing business activity.

Professional Services (NAICS 54): Focus on markets with moderate-to-high growth (3-7% annually) and substantial market size. Professional services benefit from both expansion and market size.

Health Care (NAICS 62): Look for markets with steady growth (2-5% annually) and large market size. Health care typically has consistent growth due to demographic trends.

Retail Trade (NAICS 44-45): Target markets with positive growth (3%+ annually) and large market size. Retail needs both customers and growth opportunity.

Accommodation and Food Services (NAICS 72): Prioritize markets with high growth (5%+ annually) in areas with population growth. Restaurants benefit from expanding markets with increasing foot traffic.

Common Mistakes to Avoid

Mistake 1: Using Only Current Counts Without Historical Data Current establishment counts don’t reveal growth rates. Always compare current counts to historical data (2018-2021) to calculate true growth rates.

Mistake 2: Ignoring Negative Growth Markets with declining establishment counts may indicate contracting markets. Don’t ignore negative growth—it impacts market opportunity.

Mistake 3: Not Considering Industry-Specific Growth Overall growth doesn’t reflect your industry’s specific growth patterns. Always use NAICS-filtered data for your specific industry to assess growth rates.

Mistake 4: Overlooking Market Size High growth in small markets may mean less absolute opportunity than moderate growth in large markets. Always consider both growth rate and market size.

Mistake 5: Assuming Growth Continues Past growth doesn’t guarantee future growth. Markets change, and what was high-growth 2-3 years ago may not be today. Always validate with current data and market research.

Optimization Strategies

For Maximum Growth Opportunity: Target markets with very high growth rates (10%+ annually) that offer rapidly expanding opportunities. These markets reward early entry but require careful market validation.

For Balanced Approach: Focus on markets with moderate-to-high growth (3-7% annually) and substantial market size (200,000+ establishments) that offer both expansion and market size.

For Risk-Averse Strategy: Consider markets with moderate growth (2-5% annually) and large market size (500,000+ establishments) that offer steady expansion with proven market size.

For Growth Validation: Prioritize markets where growth is consistent over multiple years (2018-2022) rather than single-year spikes. Consistent growth signals stable expansion.

Timing Considerations

Best Time to Enter High-Growth Markets: When you have resources ready and market validation complete. High-growth markets reward businesses that can leverage expanding opportunities.

Best Time to Enter Growing Markets: When growth is consistent over multiple years, indicating stable expansion. Consistent growth markets offer expansion opportunity with lower risk.

When to Reassess: Review growth rate data annually when new CBP releases become available. Market positions change, and what was high-growth 2-3 years ago may not be today.

Resource Recommendations

For Growth Analysis:

• Census Bureau County Business Patterns (official CBP data source for current and historical data)
• Historical CBP data (2018-2021) for growth rate calculations
• NAICS code lookup tools (identify your industry classification)
• Growth rate calculation tools (spreadsheet formulas for growth calculations)
• State economic development websites (local market insights)

For Location Support:

• Business Initiative location strategy services
• Local chamber of commerce (county-level market information)
• State Secretary of State websites (business registration requirements)

For Market Research:

• Combine current CBP establishment data with historical data to calculate growth rates
• Research local market dynamics and growth trends
• Consult with Business Initiative for personalized growth rate analysis and location guidance

FAQs - Frequently Asked Questions About The Business Count Growth Calculator:

In Summary

Our comprehensive exploration of business count growth rates (2018-2022) has revealed critical insights into market expansion, establishment growth, and location opportunities that can inform strategic business decisions.

Key Findings:

• Establishment counts vary dramatically by location—total establishments range from 1.02 million in California to 23,196 in Wyoming (44x difference)
• Growth rate calculations reveal market expansion—markets with high growth rates (5%+ annually) indicate expanding markets with increasing business opportunities
• Location strategy must account for growth patterns—choosing markets with high growth rates provides access to expanding markets with increasing opportunities
• Growth calculations require historical data—full growth rate calculations (2018-2022) require comparing 2022 establishment counts to historical data from 2018-2021
• Balanced approach often offers best opportunity—markets with moderate-to-high growth (3-7% annually) and substantial market size offer both expansion and market size

What This Means for Your Business: Understanding business count growth rates helps you identify expanding markets, assess market expansion potential, and make strategic location decisions. Markets with high growth rates indicate expanding opportunities and increasing business activity. The best approach balances growth rate (market expansion) with market size and business climate.

Practical Applications:

• Location Strategy: Use growth rate data to identify markets with high growth rates (5%+ annually) for expanding opportunities
• Market Analysis: Calculate growth rates by comparing 2022 establishment counts to historical data (2018-2021) to assess market expansion
• Expansion Planning: Target markets with positive growth rates for expanding opportunities and increasing business activity
• Strategic Planning: Prioritize markets with consistent positive growth over multiple years for stable expansion

Next Steps:

1. Gather historical establishment data (2018-2022) for each candidate location
2. Calculate growth rates using the formula: ((2022 - 2018) ÷ 2018) × 100
3. Rank locations by growth rate to identify fastest-growing markets
4. Assess market expansion potential based on growth rate levels
5. Consult with Business Initiative for growth rate analysis and location strategy guidance

Ready to take action based on this data?

This data can help you make informed decisions about business location, market entry, and strategic planning.

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