New business density (new registrations per 1,000 people ages 15–64)

New business density measures entrepreneurial “entry” by counting newly registered limited-liability companies in a year, standardized per 1,000 people of working age (ages 15–64). Because it focuses on formal limited-liability entities, it’s a useful lens on the pace of formal-sector business creation and how dynamic an economy’s firm population is.

The indicator is compiled from national business registries and harmonized internationally by the World Bank’s Entrepreneurship Database. It can reflect regulatory environment, access to finance, macroeconomic conditions, and structural factors (e.g., prevalence of self-employment vs. incorporated firms). Cross-country comparisons should be made cautiously because legal forms, reporting coverage, and registry practices differ.