New Business Formation

How’s the Prince William Sound Region performing?
The rate of new business formation in the district appears to have increased significantly between 2013 and 2014. Initial analysis of 2015 indicates this increased rate of business formation is continuing. A more precise measure of year over year growth will be captured for growth between 2014 and 2015. While this growth is encouraging, in comparison to the CEDS analysis in 2009-2010, there are fewer overall businesses licensed in the district

How is this metric determined?
PWSEDD analyzed the business license data base as maintained by the Alaska Department of Commerce, Community and Economic Development. The data set for businesses with a physical address within the district was extracted and culled for duplicates and analyzed based on original issue date. Licenses are issued on an annual or biennial basis. Expired licenses are purged on December 31 of the year in which it expires.

Why does this matter?
New business formation is a strong indicator of economic vitality and private sector risk taking. Further analysis of primary lines of business will help the district identify potential growth opportunities. In conjunction with the 2015 PWS Business Survey, this information can help state and local governments establish policies and practices that encourage continued new business formation.

Source:Alaska Department of Commerce, Community and Economic Development, analysis by PWSEDD