New Businesses in State at Highest Rate Since ’89

The number of new businesses incorporating in California continues to grow at the fastest rate since 1989, with Orange County and the San Francisco area leading the way, an information services company reported Wednesday.

A total of 4,507 new businesses registered with the state in July, according to CDB Infotek Inc. of Santa Ana. That brought the year-to-date total to 32,962, up 7.1% from the same period last year.

“The rate of business growth is very stable, and there’s really nothing in the economic fundamentals that would change current trends,” said CDB President Rick Rozar.

“It’s likely this will last the rest of the year and onward.”

Orange County enjoyed a 9.4% increase in new businesses during the first seven months of the year, to 3,756 from 3,432. Los Angeles County saw a 5.2% increase, to 13,388 from 12,732. Ventura County had 507 new incorporations in the seven months, up 4.8%.

Overall, the seven-county Southern California region was home to 21,763 new businesses, up 6.1%. The nine-county Bay Area had 7,509 new incorporations, up 11.2%

Orange County’s strongest ZIP codes were Irvine’s 92612 and 92614 and Newport Beach’s 92660. The busiest ZIP Code in Los Angeles was 90017, which includes part of downtown and the Pico-Union area.

The state’s seven-month new-business incorporation rate was the best since 36,737 new businesses started in the first seven months of 1989. The low point came in 1991, when 25,206 new incorporations were recorded in the first seven months.