For the second month in a row, a record number of new companies registered to do business in Iowa, indicating that strong economic growth is continuing in the state, according to the Secretary of State’s Office.
In May, the office’s Business Services Division handled filings from 2,512 new firms, up from the previous record set in April of 2,326, Secretary of State Paul Pate said this week. In turn, the state is now on target to establish a record for new business filings for the year, Pate said.
“This is a very positive economic indicator for Iowa,” Pate said in a prepared statement. “It shows entrepreneurs have income available, and they are investing it in business ventures. That hopefully translates into even more jobs in a state with one of the lowest unemployment rates in the nation.”
If the state sets another record for new business filings in 2019, it would be the fourth consecutive year of record-shattering filings, Pate’s office said.
The tide of business filings comes in the wake of the office implementing a fast-track filing system last year. The new system allows businesses to register with the state in minutes, compared to up to three weeks under the old process, according to the office.
Pate painted a picture of a deluge of business activity occurring within his office.
“My Business Services Division handled more than 25,000 calls in the first five months of this year, and we’re processing new business filings faster than ever before,” he said.
Before 2019, the single-month record for most business filings in Iowa was 2,204, which occurred in March 2018.
For each of the last three years, more than 20,000 new Iowa companies have been launched, Pate reported in May.
“The majority of jobs are created by small businesses and since we also have the lowest unemployment rate in the nation, Iowa is clearly moving in the right direction,” he said.
The business filings report dovetails with a report released by the job-search company Zippia earlier this year. That report ranked Iowa the best state for job-seekers.
In its analysis, Zippia ranked all 50 states based on measures that included improvement in jobless numbers, the current unemployment rate and comparisons of home prices to income. In addition, Iowa was found to have a median income of $56,570 and a jobless rate of 2 percent, the study said.
“This state ranked first in our top 10 because they ranked first in home-to-income ratio (your income goes a long way in Iowa) ... and 30th in income,” the Zippia analysis states. “In Iowa, you don't need a massive salary, because the salary you do get is enough for everything you need.”