Exploring the Importance of Business Formation Statistics (BTOS) for Policymakers and Businesses: An In-Depth Look at this Valuable Economic Tool

The Business Formation Statistics (BTOS) data provide a comprehensive representation of all employer businesses in the U.S. economy, excluding farms. This valuable tool offers continuous and timely updates on key economic measures every two weeks, providing insights into the state of the economy. The BTOS data is broken down into detailed geographic and subsector information, allowing it to capture the impact of significant events such as natural disasters and economic crises, as well as monitor recovery efforts.

The sample for BTOS consists of around 1.2 million businesses that are surveyed biweekly. These businesses are divided into six panels, each containing approximately 200,000 cases that report every 12 weeks for a year. On average, it is estimated that respondents take about nine minutes to complete the survey, including time to review instructions and provide answers.

The BTOS data is released biweekly and can be accessed by sector, state, and the 25 most populous metropolitan statistical areas. This information is critical for local, state, and federal officials as it provides real-time data to aid in policymaking and decision-making. Additionally, businesses can utilize this information to make informed economic decisions.