Chicago City Wire

Despite a high number of business applications filed in Illinois compared to other Midwestern states, only 5.6% of those applicants opened businesses and became operational within 12 months in 2024. This figure represents 9,645 new businesses for the year, which is below the national average of 6.1%.

Experts from the Illinois Policy Institute have identified several factors contributing to this trend, including high taxes, strict regulations, and significant government pension debt. They argue that these issues create obstacles for entrepreneurs seeking to establish or maintain operations in Illinois.

“These businesses symbolize lost jobs, lost investment, shrinking futures and fewer opportunities for Illinois families,” said Bryce Hill, director of fiscal and economic analysis at the nonpartisan Illinois Policy Institute. “People want to open their businesses here but they’re getting stuck in the process. These same conditions are pushing already successful businesses in Illinois to other states. That should be noted by leaders: Illinois’ hostile tax environment hinders its success, especially when compared to states where businesses are heading.”

For more information on business migration trends affecting Illinois, visit illin.is/ilbizmoves.