City September 11, 2012 9:10 AM

The Geography of Business Density

The Geography of Business Density
Thanks to BRO reader GW for passing along an interesting stat recognizing Buffalo-Niagara MSA* as #17 in top 20 large metros (1 Million+) with the highest business density (establishments per sq. mile). 
 
"The variation in business establishment density across metros is substantial, from a high of almost 80 businesses per square mile to a low of 0.2. The average for U.S. metros is 6.8 establishments per square mile." - Richard Florida - Atlantic Cities

Buffalo at 17.1 establishments per square mile is in decent shape by this metric. - GW


Business Density for the Top 20 Large Metros

Rank-Buffalo-Business-2012.jpg
*Metropolitan Statistical Areas

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This might be impressive if I could make out what the significance of it is. It would seem that it is simply the number of businesses divided by the area of the MAS, which seems to be arbitrarily determined. It seems simplistic and inaccurate to try to correlate a number like this to any type of economic meaning. It might just as meaningful as comparing MSAs by the number of mailboxes per square mile. As much as it's nice to see the area high on a positive list, what are we supposed to take away from something like this?

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Its amazing that the gaps between the top 4 are so large.

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Like evetything from Richard Florida it's meaningless descriptive data that people try to draw conclusions from. The only conclusion here is that this data has to relation to regional economic strength or vitality given Bflo, Detroit, Cleveland, etc.

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I'd love to see how this breaks down within our metro area. And where we have the highest density within the metro. I have some hunches...

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