Comparable baseline
Massachusetts at a glance
| Population | 7,154,084 | July 1, 2025; +2.4% since 2020 |
|---|---|---|
| Business applications | 7,497 | July 2026, seasonally adjusted |
| Trailing-12-month applications | 84,897 | 1,186.7 per 100,000 residents |
| High-propensity applications | 2,557 | 34.1% of July applications |
| Projected employer formations | 581 | Census four-quarter projection for July's cohort |
| Small businesses | 756,096 | SBA 2025 profile; underlying employer and nonemployer data are from 2022 |
| Small-business employment | 1,516,837 | 44.7% of private employment in 2022 |
| Employer establishments | 183,767 | 2023 County Business Patterns |
Application rankings cover the 50 states and use unrounded figures. Applications are qualifying EIN filings, not confirmed business openings. Measurement years differ because federal datasets are released on different schedules.
Massachusetts receives relatively few business applications for its population, but a large share meet Census’s employer-oriented criteria. Its 7,497 applications in July 2026 equaled 104.8 per 100,000 residents, ranking 44th among states; 34.1% were classified as high propensity, the third-highest share.
Application volume and growth remain subdued
July filings were 14.0% above July 2025 but 1.0% below June. Massachusetts ranked 37th for the year-over-year change. The state recorded 84,897 applications from August 2025 through July 2026, 12.0% more than in the preceding year and 41st for growth.
The population-adjusted trailing-year rate was also low: 1,186.7 applications per 100,000 residents, ranking 46th. This is not merely a small-state raw-count effect.
Massachusetts still sits well above its pre-pandemic monthly level. Census counted 4,364 applications in July 2019, making the July 2026 total 71.8% higher. Population grew 2.4% from the 2020 Census base to an estimated 7.15 million in July 2025. The longer increase in applications is real, even though current growth and application intensity are modest relative to other states.
Strong model signals are not observed success rates
Census classified 2,557 July applications as high propensity, or 34.1% of the total. It also projected 581 employer formations from the July cohort within four quarters. The projection equaled 7.75 formations per 100 applications, the fourth-highest modeled ratio among states.
These statistics do not mean Massachusetts applicants have already formed employer businesses at the fourth-highest rate. High-propensity status is based on administrative characteristics, while projected formations come from a Census model that anticipates future payroll activity. Neither measures revenue, survival, or business quality.
Massachusetts receives relatively few applications for its population, but the current application pool contains a comparatively high share of filings associated with eventual employer formation.
Private educational services are unusually concentrated
Educational services employed 230,184 people in establishments covered by 2023 County Business Patterns. The sector represented 6.6% of covered private employment—2.38 times its 50-state share, the state’s strongest large-sector concentration in this comparison.
The scope matters: County Business Patterns excludes government establishments, so the measure describes private educational-services employment rather than the entire education workforce. Professional, scientific, and technical services was also above the national share, with 369,685 jobs and a location quotient of 1.44.
The employment geography is concentrated in two counties. Middlesex held 27.6% of covered private jobs and Suffolk 20.7%; together they accounted for 48.3%. Norfolk County added 9.7%, bringing the top-three share to 58.0%. The Massachusetts statewide average therefore leans heavily on the greater Boston employment market.
Small firms employ a smaller-than-average workforce share
The SBA reported 756,096 small businesses using 2022 component data: 143,964 small employer firms and 612,132 businesses without paid employees. Small firms employed 1,516,837 people, or 44.7% of private-sector employment, ranking 38th among states.
Official starting points for a Massachusetts business
- Plan the sequence: The state’s startup overview covers structure, DBA certificates, taxes, licenses, and counseling.
- File an entity: The Secretary of the Commonwealth lists online, mail, fax, and walk-in filing methods.
- Register taxes: MassTaxConnect registration guidance explains accounts and licenses administered by the Department of Revenue.
- Check local rules: The startup overview directs owners to state professional boards and city or town licensing authorities where applicable.
- Get assistance: The state’s funding and resources directory links the Massachusetts SBDC and other support programs.
Source and calculation note
Application figures use the Census July 2026 Business Formation Statistics release. Monthly values are seasonally adjusted; trailing-year totals sum unadjusted applications from August 2025 through July 2026 and compare them with the prior August–July period. Rates use the July 1, 2025 population estimate. SBA measures use 2022 employer and nonemployer data. Industry and county measures use 2023 County Business Patterns employment. BizFacts calculated changes, rates, regional medians, ratios, shares, location quotients, and 50-state ranks from sources retrieved September 3, 2026.