Connecticut Business Registrations Increase 20% in 2021

Between 2010 and 2020, business registrations in Connecticut increased by an average of 5% per year. In 2021, however, business registrations increased by over 20%, thru the end of November, according to an analysis by the Connecticut Data Collaborative of data filed with the Office of Secretary of the State.

Monthly new business registrations in Connecticut dipped during early 2020, when COVID-19 first emerged, with a low of 2,196 registrations during April 2020. Since April 2020, business registrations have steadily increased, with only several small dips in fall 2020 and summer 2021. Even with these small dips, the number of business registrations during each month of 2021 exceeded the number of registrations pre-COVID in 2019.

Those business registration statistics reflect a state economy that spent much of 2021 earnestly working at recovery. Throughout 2021, through November 30, there were 47,584 business registrations in Connecticut, the most in more than a decade. By comparison, there were 39,570 business registrations in 2020; and 36,323 in 2019.

“Business registrations are an important element in assessing economic trends and highlight the places, industries and people driving economic growth,” said Michelle Riordan-Nold, Executive Director of the Connecticut Data Collaborative. “The difference between 2021 and 2019 is striking - and hopefully this year the trend continues as residents find ways to innovate and create new opportunities in a changing economy.”

The Connecticut Data Collaborative is a statewide public-private partnership that focuses on ensuring public data is open and accessible. CTData runs the CTData Academy, offering an array of workshops and training for people interested in improving their data literacy, providing opportunities for individuals, businesses and organizations to become more informed data users and critical data consumers. In addition, CTData provides customized data training, creates customized data visualizations and interactive data tools, provides data consulting services, and supports a community of data users through events and conferences.

Business Registrations by Industry Category Reflect Growth

Overall, the largest number of business registrations from January 2019 through November 2021 were in Real Estate Rental and Leasing (19% of all new businesses), followed by Professional, Scientific, and Technical Services (11%), Other Services (11%), Retail Trade (11%), and Construction (10%). These five industries consistently led the way in all three years. (74% of businesses indicated their industry when registering.)

Comparing each year by industry, 2021 clearly dominated.

• In the Construction industry, for example, there were 1,695 business registrations in 2019. That more than doubled in 2020 to 3,567, and increased again, to 4,082 in 2021.
• In Real Estate Rental and Leasing, there were 4,294 business registrations in 2019, 6,423 in 2020 and 7,092 in 2021.
• In the Professional, Scientific and Technical Services business category, the number of business registrations in successive years was 2,544, followed by 3,869 and 4,037.
• In the Retail Trade category, business registrations grew from 1,463 to 3,895, to 4,373 in 2021 (thru November).

Cities Lead in Business Registration

Leading the way in business registrations in Connecticut during 2021 have been the cities of Bridgeport with 2,318 (an increase of 59% from 2019), Stamford with 2,052 (an increase of 23%), Hartford with 1,712 (an increase of 62%), and New Haven with 1,612 (an increase of 47%).

From January 2019 through November 2021, municipalities with the highest number of business registrations were Stamford (5,578), Bridgeport (5,497), Hartford (4,091), New Haven (3,942), and Danbury (3,561).

Businesses Owned by Women, People of Color

From January 2019 through November 2021, 15% of new businesses identified as woman-owned, 13% as minority-owned, and 1% as veteran-owned. (However, businesses are not required to indicate this status upon registration, so the data may be incomplete.)

The data analysis of business registrations shows that the largest percentage of woman-owned businesses are in Retail Trade (16%) Professional, Scientific and Technical Services (13%), Real Estate & Leasing (12%). Of all the business starts from 2019-2021, women-owned made up 43% in Health Care and Social Assistance and 35% in Educational Services.

The largest percentage of businesses owned by people of color are in Retail Trade (16%), Real Estate Rental & Leasing (12%), Professional, Scientific and Technical Services (9%), and Construction (9%). Of all the business starts from 2019-2021, minority-owned made up 28% of Transportation and Warehousing and almost a quarter of Retail Trade.

More than 200 data sets are now accessible to the public on the CTData website, including a wide array of subjects and policy categories. CT Data has also recently developed two-page profiles featuring demographic and economic information for each of Connecticut’s 169 cities and towns, in partnership with AdvanceCT.

CTData serves as the lead organization in the U.S. Census Bureau’s State Data Center Program for Connecticut and is the state’s official source for census data. CTData was recognized last year by the Connecticut Entrepreneur Awards in the Education category. More information is available at www.ctdata.org.