Business Incorporations Up 2% in 1997

The number of new U.S. business incorporations in 1997 rose to a record for the sixth consecutive year, a survey showed. Incorporations were up 2% last year to a record 798,917, according to a survey conducted by Dun & Bradstreet Corp. Last year’s increase was down from the 3% gain in 1996 to 786,482. Much of 1997’s gain was from companies in Montana, Wyoming, Arizona and Utah, which posted a 5% increase. “While filings of new incorporations are not necessarily an indicator of new business formation, they do reflect the plans of individuals to create new business ventures,” said Joseph W. Duncan, chief economic advisor at Dun & Bradstreet. “Therefore, the record-high number of incorporations combined with the slowing pace of filings is a measure of a healthy, cautious optimism among U.S. entrepreneurs.” Six of the nine regions surveyed reported increases in business incorporations last year: the Mountain, Pacific, South Atlantic, West South Central, West North Central and Middle Atlantic areas.