The United States experienced an unprecedented surge in entrepreneurial activity, with a record-breaking 5.5 million new business applications filed. This marks the third consecutive year of historic small business growth under the Biden-Harris Administration, bringing the total number of new business applications to 16 million since 2021.

Key Highlights:

• Record-Breaking Numbers: The 5.5 million new business applications in 2023 represent the highest annual total on record, surpassing previous years and indicating a robust entrepreneurial spirit across the nation.
• Diverse Industry Growth: The surge in new business applications spans various sectors, with notable increases in accommodation and food services (+66%), retail trade (+55%), and health care and social assistance (+45%) compared to pre-pandemic levels.
• Demographic Expansion: The entrepreneurial boom is characterized by significant growth among Black, Latino, and women founders, reflecting a more inclusive landscape for business ownership.

Implications for the Economy:

This surge in new business applications underscores a resilient and dynamic economy, with individuals across the country pursuing entrepreneurial ventures. The diverse range of industries and the increased participation of historically underrepresented groups in business ownership are indicative of a more inclusive economic environment.

As we move into 2025, the Small Business Administration (SBA) remains committed to supporting this entrepreneurial momentum by providing resources and assistance to new businesses. The goal is to foster an environment where these new ventures can thrive, contributing to job creation and economic growth.

The historic surge in new business applications not only highlights the resilience and adaptability of the American entrepreneurial spirit but also sets a promising trajectory for the nation’s economic future.