New-Business Incorporations Keep Up Pace
The number of new businesses incorporating in California during the second quarter continued to grow at the fastest pace since 1989, reflecting the state’s improving economy, an information services firm reported Thursday.
A total of 13,075 new businesses registered with the state from April to June, a 5.1% increase from the 12,445 for the same period last year, reported CDB Infotek of Santa Ana.
“Statewide, things are looking pretty good,” said John Karevoll, a consultant with CDB. “And most importantly, we’re seeing stable growth in new businesses.”
It was the seventh consecutive quarter of increases in new-business incorporations, CDB reported. During the first quarter of this year, new-business incorporations rose 5.4%, to 14,925 from 14,166.
Although the state saw a strong increase, new-business incorporations in Los Angeles County were flat. A total of 5,304 new businesses incorporated, compared with 5,299 during the second quarter of last year, a 0.1% increase.
In Orange County, new-business incorporations jumped 8.7%, with 1,476 registered, compared with 1,358 in the second quarter of last year.
“The state’s doing great, Orange County’s doing great, but Los Angeles County? Oh boy,” said Jack Kyser, chief economist with the Economic Development Corp. of Los Angeles County. “You have to say these numbers are puzzling, given what we hear happening in the new-media, entertainment and apparel industries.”
Kyser said part of the problem is a lack of venture capital money in L.A.
“The Los Angeles numbers are not so bad,” said Karevoll. “Like the rest of the state, Los Angeles is having its best year since 1989.”
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Ballooning Businesses
California business incorporations* grew at a fast pace in the second quarter.
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2nd-quarter 2nd-quarter Percent County/Region** 1996 1997 change Los Angeles 5,299 5,304 0.1% Orange 1,358 1,476 8.7 San Diego 976 995 1.9 Riverside 302 323 7.0 San Bernardino 278 330 18.7 Ventura 194 225 16.0 S. California total 8,426 8,666 2.8 Alameda 470 470 0.0 Contra Costa 277 275 --0.7 Marin 143 152 6.3 Napa 38 28 --26.3 San Francisco 547 592 8.2 San Mateo 309 357 15.5 Santa Clara 777 853 9.8 Solano 40 59 47.5 Sonoma 116 130 12.1 Bay Area total 2,717 2,916 7.3 Central Valley total 816 1,017 24.6 Coast total 293 322 9.9 N. California total 131 95 --27.5 Sierra/Foothills total 62 59 --4.8 Statewide 12,445 13,075 5.1
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* The numbers include all California incorporations. Limited partnerships and out-of-state companies establishing a formal California presence are not included.
** Totals include additional counties
Source: CDB Infotek
