February 22, 2023
C-Suite Wednesday – Yelp Reports Significant New Business Growth in the South and Midwest
“Findings reveal significant population migration from Western and Northeastern states to Southern and Midwestern areas. Yelp data also uncovers a positive economic impact for local businesses in states that had an increase in share of search locations. These states saw a higher average increase in new business openings across nearly all categories in 2022 compared to 2019 – driven by local and home services business openings, indicating potentially permanent moves,” reads Yelp’s most recent report about shifts in population and business growth.
Here are the facts from Yelp about new business growth:
• The largest increase of new businesses in states that people are moving to were in the home services industry (57%).
• Local services businesses increased 47% from 2019 to 2022.
• New automotive services and hotels & travel businesses increased 29%.
• The beauty services and event services industries had a respective 24% and 20% increase in new business in the fastest-growing states.
• In South Dakota, North Dakota, West Virginia, Wyoming, and Mississippi, the largest increase in new businesses was in local services (78%), home services (76%), and beauty services (52%) compared to 2019.
• Compared to 2019, there were fewer business openings in the shopping, bars and nightlife, active life, and restaurant industries.
• In the states people are moving away from, the biggest increases in business openings were in the home services (31%), automotive services (24%), and local services (19%) industries.
Yelp Economic Average Report