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Iowa records a record number of new businesses

33,331 new businesses were added in the last fiscal year, the Iowa Secretary of State's office reports.

DES MOINES, Iowa — Iowa recorded a record 33,331 new businesses in the last fiscal year, setting a record number for the months of March and June for the amount of new businesses registered in the state's office. 

"I think overall, it was just a general economic climate in Iowa, made it very advantageous," said Iowa Secretary of State Paul Pate. "And it put us again over the top for another new record." 

The Collective is a small business that started up a few years ago. The owner Jamie Nicolino said she chose to start a business in Des Moines due to the culture.

"I love Des Moines, I want to bring more sustainable things to Des Moines, I care about this city and we have work to do here," Nicolino said.

Pate said although its good news that these businesses are opening in Iowa, he worries about their longevity. 

"When you start looking at statistics. . . the first three years are a struggle for new businesses," Pate said. "So you really want to revisit that and watch the third, fourth year and go, 'Okay, are they still with us?' And we want to do what we can to hold on to that."

New businesses don't have to go at it alone, however. Nicolino helps other small businesses find their sea legs by selling their merch in her own store. 

"I would say it's collaboration over competition here, at least in this community," Nicolino said. "And you're not alone. And so you really feel that by the connections that you build with the other small business owners here."

Pate believes reducing filing fees for the beginning of the fiscal year helped speed up the process for some businesses, but he says the reduction of taxes helps Iowa's small businesses keep their doors open.

"The last two legislative sessions, the governor and the legislature have done a yeoman's job of bringing those tax rates down to be more competitive, so we're not looking at going to other states. Iowa is the place to be," Pate said.

Pate also noted the pandemic encouraged people to take a leap of faith and start a new business, saying for some it opened a lot of doors for new opportunities.


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