The Park Place Economist


The formation of new business affects the economy as a whole, but analyzing local economies can help these specific regions distinguish what factors affect their new business formation. Studies have been conducted on a national scale, but not many have been conducted on local levels in certain areas. Different economic factors could affect different regions in different ways. Knowing the specific economic factors that correlate with new business formation in specific regions could be valuable to building a strong local economy. I will be analyzing data from Illinois, and trying to find out if variables like income per capita, unemployment rate, recession time periods, or existing firms affect new business formation.