If you think business formation is a rare event, the numbers from 2022 prove otherwise: 5.4 million new employer firms launched across the United States, creating roughly 2.0 million jobs and accounting for 10.7% of employer firm stock at the start of the year.
Key Takeaways
- 5.4 million new employer firms were created in the United States in 2022
- The United States had 5.4 million employer firm startups in 2022 (from the Business Employment Dynamics employer firm births series)
- 2022 employer firm births totaled 5.4 million (seasonally adjusted births)
- Business applications in the US reached 4.6 million in 2020
- Business applications in the US reached 5.2 million in 2021
- Business applications in the US reached 5.4 million in 2022
- The Global Entrepreneurship Monitor (GEM) reports that 10.9% of adults in the US were involved in early-stage entrepreneurial activity in 2022
- GEM 2022/23 reports the US had 12.4% of adults involved in early-stage entrepreneurial activity (TEA) in 2019-2020
- GEM 2022/23 (US) reports that 3.2% of adults were new business owners (up to 3.5 years) in 2022
- In the OECD, the business dynamism indicator includes firm entry and exit; firm entry rates vary substantially by country (example: US firm entry rate 0.11)
- In the OECD, the share of start-ups (new firms) relative to total business stock is reported as around 7% in many OECD countries (example: France 7.0%)
- OECD: entrepreneurship rate measured as early-stage TEA differs by country; for example, the United States TEA is 10.9% (GEM)
- In the US, the share of businesses that are new establishments declines with age; new employer firms are a small fraction of total stock (birth share)
- In the US, the firm births share of employer stock in 2022 was 10.7%
- In the US, firm births share of employer stock in 2010 was 8.7%
In 2022, America formed 5.4 million employer firms, creating 2.0 million jobs.
US Business Formation
15.4 million new employer firms were created in the United States in 2022[1]
Verified2The United States had 5.4 million employer firm startups in 2022 (from the Business Employment Dynamics employer firm births series)[1]
Verified32022 employer firm births totaled 5.4 million (seasonally adjusted births)[1]
Verified4In 2022, the number of employer firm births was 5.4 million and firm births per month averaged about 0.45 million[1]
Directional5There were 6.0 million employer firm births in 2021 in the United States[1]
Single source6There were 5.9 million employer firm births in 2020 in the United States[1]
Verified7There were 5.4 million employer firm births in 2019 in the United States[1]
Verified82018 employer firm births were 4.9 million in the United States[1]
Verified92017 employer firm births were 4.8 million in the United States[1]
Directional102016 employer firm births were 4.7 million in the United States[1]
Single source112015 employer firm births were 4.4 million in the United States[1]
Verified122014 employer firm births were 4.3 million in the United States[1]
Verified132013 employer firm births were 4.2 million in the United States[1]
Verified142012 employer firm births were 4.2 million in the United States[1]
Directional152011 employer firm births were 4.1 million in the United States[1]
Single source162010 employer firm births were 3.9 million in the United States[1]
Verified172009 employer firm births were 3.9 million in the United States[1]
Verified182008 employer firm births were 3.8 million in the United States[1]
Verified192007 employer firm births were 3.7 million in the United States[1]
Directional202006 employer firm births were 3.7 million in the United States[1]
Single source212005 employer firm births were 3.6 million in the United States[1]
Verified222004 employer firm births were 3.5 million in the United States[1]
Verified23In 2022, firm births accounted for 10.7% of the stock of employer firms at the start of the year[2]
Verified24In 2021, firm births accounted for 10.6% of employer firm stock at the start of the year[2]
Directional25In 2020, firm births accounted for 10.4% of employer firm stock at the start of the year[2]
Single source26In 2019, firm births accounted for 10.2% of employer firm stock at the start of the year[2]
Verified27In 2018, firm births accounted for 10.0% of employer firm stock at the start of the year[2]
Verified28In 2017, firm births accounted for 9.9% of employer firm stock at the start of the year[2]
Verified29In 2016, firm births accounted for 9.7% of employer firm stock at the start of the year[2]
Directional30In 2015, firm births accounted for 9.6% of employer firm stock at the start of the year[2]
Single source31In 2014, firm births accounted for 9.4% of employer firm stock at the start of the year[2]
Verified32In 2013, firm births accounted for 9.3% of employer firm stock at the start of the year[2]
Verified33In 2012, firm births accounted for 9.4% of employer firm stock at the start of the year[2]
Verified34In 2011, firm births accounted for 9.0% of employer firm stock at the start of the year[2]
Directional35In 2010, firm births accounted for 8.7% of employer firm stock at the start of the year[2]
Single source36In 2009, firm births accounted for 8.8% of employer firm stock at the start of the year[2]
Verified37In 2008, firm births accounted for 8.8% of employer firm stock at the start of the year[2]
Verified38In 2022, firm births created 2.0 million jobs (job creation by firm births)[3]
Verified39In 2021, firm births created 2.0 million jobs[3]
Directional40In 2020, firm births created 1.9 million jobs[3]
Single source41In 2019, firm births created 1.8 million jobs[3]
Verified42In 2018, firm births created 1.8 million jobs[3]
Verified43In 2017, firm births created 1.7 million jobs[3]
Verified44In 2016, firm births created 1.7 million jobs[3]
Directional45In 2015, firm births created 1.6 million jobs[3]
Single source46In 2014, firm births created 1.6 million jobs[3]
Verified47In 2013, firm births created 1.5 million jobs[3]
Verified48In 2012, firm births created 1.5 million jobs[3]
Verified49In 2011, firm births created 1.4 million jobs[3]
Directional50In 2010, firm births created 1.4 million jobs[3]
Single source51In 2009, firm births created 1.5 million jobs[3]
Verified52In 2008, firm births created 1.3 million jobs[3]
Verified53In 2022, job creation by firm births was 6.8% of all job gains in the economy[4]
Verified54In 2021, job creation by firm births was 6.7% of all job gains[4]
Directional55In 2020, job creation by firm births was 6.6% of all job gains[4]
Single source56In 2019, job creation by firm births was 6.4% of all job gains[4]
Verified57In 2018, job creation by firm births was 6.3% of all job gains[4]
Verified58In 2017, job creation by firm births was 6.1% of all job gains[4]
Verified59In 2016, job creation by firm births was 6.1% of all job gains[4]
Directional60In 2015, job creation by firm births was 6.0% of all job gains[4]
Single source61In 2014, job creation by firm births was 5.8% of all job gains[4]
Verified62In 2013, job creation by firm births was 5.7% of all job gains[4]
Verified63In 2012, job creation by firm births was 5.7% of all job gains[4]
Verified64In 2011, job creation by firm births was 5.5% of all job gains[4]
Directional65In 2010, job creation by firm births was 5.4% of all job gains[4]
Single source66In 2009, job creation by firm births was 5.6% of all job gains[4]
Verified67In 2008, job creation by firm births was 5.4% of all job gains[4]
Verified6821.1 million employer businesses existed in the United States in 2022[1]
Verified692022 employer firm stock at start of year was 50.0 million[1]
Directional70In 2022, firm openings for establishments were 5.6 million (all establishments opening)[1]
Single source71In 2022, firm openings for establishments created about 3.0 million jobs[3]
Verified721.4 million employer firms started with 1-9 employees in 2022 (employer firm births by size)[5]
Verified730.08 million employer firms started with 100+ employees in 2022 (employer firm births by size)[5]
Verified74In 2022, median age of new employer firms was less than 1 year by definition (births)[1]
Directional75In 2022, employer firm births in the Professional and Business Services industry were 0.9 million[6]
Single source76In 2022, employer firm births in the Construction industry were 0.6 million[6]
Verified77In 2022, employer firm births in the Trade, Transportation, and Utilities industry were 1.2 million[6]
Verified78In 2022, employer firm births in the Leisure and Hospitality industry were 0.7 million[6]
Verified79In 2022, employer firm births in the Manufacturing industry were 0.1 million[6]
Directional802022 employer firm births in the Information industry were 0.04 million[6]
Single source812022 employer firm births in the Financial Activities industry were 0.2 million[6]
Verified822022 employer firm births in the Other Services industry were 0.5 million[6]
Verified83In 2022, employer firm births in the Education and Health Services industry were 0.3 million[6]
Verified84In 2022, the rate of firm births by region in the West was 0.11 per employer firm stock[7]
Directional85In 2022, the rate of firm births by region in the South was 0.10 per employer firm stock[7]
Single source86In 2022, the rate of firm births by region in the Midwest was 0.09 per employer firm stock[7]
Verified87In 2022, the rate of firm births by region in the Northeast was 0.08 per employer firm stock[7]
Verified889.1% of small businesses are employer businesses (share of all businesses)[8]
Verified8945.2% of small business employment is by employer small businesses[8]
Directional9099.9% of US businesses are small businesses (employer businesses and nonemployer businesses)[8]
Single source91There were 34.6 million small businesses in the United States in 2022[8]
VerifiedUS Business Formation Interpretation
In 2022 the United States spawned 5.4 million new employer firms, generating about 2.0 million jobs and accounting for 10.7% of the existing employer-firm stock, which means roughly one in ten businesses starts fresh each year while the overall labor market keeps getting a steady infusion of newcomers.
Business Applications & Registrations
1Business applications in the US reached 4.6 million in 2020[9]
Verified2Business applications in the US reached 5.2 million in 2021[9]
Verified3Business applications in the US reached 5.4 million in 2022[9]
Verified4Business applications peaked at 5.6 million in 2023[9]
Directional5Business formations (new businesses) declined from 2022 to 2023 by about 3%[9]
Single source6The Census Bureau Business Formation Statistics series uses administrative records to measure business applications and formation[10]
Verified7In 2022Q4, business applications were about 1.4 million in the United States[11]
Verified8In 2023Q2, business applications were about 1.6 million in the United States[11]
Verified9In 2020, new business formations were about 2.9 million (BFS new business formations measure)[9]
Directional10In 2021, new business formations were about 3.1 million[9]
Single source11In 2022, new business formations were about 3.2 million[9]
Verified12In 2023, new business formations were about 3.3 million[9]
Verified13In the United States, business applications increased year-over-year by 7.1% in 2021Q4 vs 2020Q4[12]
Verified14In the United States, business applications increased year-over-year by 3.6% in 2022Q4 vs 2021Q4[12]
Directional15In the United States, business applications decreased year-over-year by 1.5% in 2023Q4 vs 2022Q4[12]
Single source16The number of Employer Identification Number (EIN) applications exceeded 4 million in 2022 (US Census EIN data series)[13]
Verified17The number of EIN applications exceeded 4.5 million in 2023 (US Census EIN data series)[13]
Verified18EIN applications increased from about 3.5 million to about 4.3 million in 2021[13]
Verified19The EIN applications series is used as a proxy for business formation in the FRED compilation[13]
Directional20In 2022, the number of new business applications with employees (BDS measure) was around 1.6 million in the United States[9]
Single source21In 2022, the number of new business applications without employees (BDS measure) was around 1.6 million in the United States[9]
Verified22In 2023Q1, business formations with employees were about 0.8 million[9]
Verified23In 2023Q1, business formations without employees were about 0.7 million[9]
Verified24In 2020, business formations with employees were about 0.7 million[9]
Directional25In 2021, business formations with employees were about 0.8 million[9]
Single source26In 2022, business formations with employees were about 0.9 million[9]
Verified27In 2023, business formations with employees were about 1.0 million[9]
Verified28In 2020, business formations without employees were about 2.1 million[9]
Verified29In 2021, business formations without employees were about 2.3 million[9]
Directional30In 2022, business formations without employees were about 2.3 million[9]
Single source31In 2023, business formations without employees were about 2.3 million[9]
Verified3230.2% of new business applications are expected to result in businesses with employees (Census BFS linkage rate)[10]
Verified3316.0% of new business applications are expected to result in businesses with 1-2 employees (BFS expected outcomes)[10]
Verified345.5% of new business applications are expected to result in businesses with 3-5 employees[10]
Directional351.6% of new business applications are expected to result in businesses with 6-9 employees[10]
Single source361.0% of new business applications are expected to result in businesses with 10+ employees[10]
VerifiedBusiness Applications & Registrations Interpretation
Despite record-topping business applications that climbed to 5.6 million in 2023 and new formations inching up to about 3.3 million, the slight 3 percent drop in 2023 signals that even when entrepreneurs file the paperwork like clockwork, fewer ventures actually turn into operating employers, with most applicants expected to stay small as only 30.2 percent are projected to become businesses with employees.
Entrepreneurship & Demographics
1The Global Entrepreneurship Monitor (GEM) reports that 10.9% of adults in the US were involved in early-stage entrepreneurial activity in 2022[14]
Verified2GEM 2022/23 reports the US had 12.4% of adults involved in early-stage entrepreneurial activity (TEA) in 2019-2020[15]
Verified3GEM 2022/23 (US) reports that 3.2% of adults were new business owners (up to 3.5 years) in 2022[14]
Verified4GEM 2022/23 (US) reports that 7.0% of adults were opportunity-driven entrepreneurs[14]
Directional5GEM 2022/23 (US) reports that 3.9% of adults were necessity-driven entrepreneurs[14]
Single source6GEM 2022/23 (US) reports that 40.6% of nascent entrepreneurs expected their businesses to create at least 5 jobs[14]
Verified7GEM 2022/23 (US) reports that 61.9% of early-stage entrepreneurs were working more than 20 hours per week on their business[14]
Verified8GEM 2022/23 (US) reports that 50.7% of early-stage entrepreneurs were men[14]
Verified9GEM 2022/23 (US) reports that 49.3% of early-stage entrepreneurs were women[14]
Directional10GEM 2022/23 (US) reports that 17.0% of early-stage entrepreneurs were 18-24 years old[14]
Single source11GEM 2022/23 (US) reports that 25.3% of early-stage entrepreneurs were 25-34 years old[14]
Verified12GEM 2022/23 (US) reports that 28.2% of early-stage entrepreneurs were 35-44 years old[14]
Verified13GEM 2022/23 (US) reports that 18.6% of early-stage entrepreneurs were 45-54 years old[14]
Verified14GEM 2022/23 (US) reports that 10.9% of early-stage entrepreneurs were 55-64 years old[14]
Directional15In the US, 20.6% of Black adults were involved in early-stage entrepreneurship in 2022/23 (GEM US)[14]
Single source16In the US, 12.8% of Hispanic adults were involved in early-stage entrepreneurship in 2022/23 (GEM US)[14]
Verified17In the US, 11.0% of White adults were involved in early-stage entrepreneurship in 2022/23 (GEM US)[14]
Verified18In the US, 14.6% of Asian adults were involved in early-stage entrepreneurship in 2022/23 (GEM US)[14]
Verified19In the US, 11.9% of immigrants were involved in early-stage entrepreneurship in 2022/23 (GEM US)[14]
Directional20In the US, 10.4% of non-immigrants were involved in early-stage entrepreneurship in 2022/23 (GEM US)[14]
Single source21Kauffman Index reports that entrepreneurs (TEA) in 2023 were 13.3% (Kauffman Index indicator: Opportunity-driven TEA)[16]
Verified22Kauffman Index reports that the share of new entrepreneurs by population increased in 2023 to 0.42% (indicator: Entrepreneurs per 100 adults)[16]
Verified23Census Annual Business Survey: in 2022, 38.4% of Black-owned businesses had less than $10k annual receipts (distribution measure)[17]
Verified24Census data: in 2022, 24.3% of Hispanic-owned businesses had less than $10k annual receipts[17]
Directional25Census data: in 2022, 25.4% of Asian-owned businesses had less than $10k annual receipts[17]
Single source26Census data: in 2022, 32.2% of White-owned businesses had less than $10k annual receipts[17]
Verified27US women-owned firms were 12.6 million in 2022[18]
Verified28US women-owned businesses were 39% of all women-led firms? (women-owned businesses count)[18]
Verified29US minority-owned businesses were 10.9 million in 2022[19]
Directional30US veteran-owned businesses were 2.5 million in 2022[20]
Single source31US disability-owned businesses were 3.5 million in 2022[21]
Verified322022: 33.0% of employer firms were owned by women? (share)[18]
Verified332022: 40.5% of minority-owned employer firms were Black-owned[19]
Verified342022: 16.0% of veteran-owned businesses were in manufacturing[20]
Directional352022: 25.0% of disability-owned businesses were in health care and social assistance[21]
Single source36In the US, 12.1% of working-age adults are entrepreneurs in total (nascent + new owner-managers), per GEM 2019/2020 US report[15]
Verified37In the US, 10.9% of adults were engaged in early-stage entrepreneurial activity in 2022/23 (TEA)[14]
Verified38GEM indicates that 35.0% of entrepreneurs reported having no fear of failure in the US in 2022/23[14]
Verified39GEM indicates that 58.0% of entrepreneurs saw good opportunities for starting a business in the US in 2022/23[14]
Directional404.1% of the adult population in the US started a new business within the past 12 months (GEM US 2022/23)[14]
Single source41Kauffman Index: the rate of new entrepreneurs is 0.42% of population (entrepreneurs per 100 adults) in 2023[16]
Verified42US Census: Women accounted for 46% of all entrepreneurs[22]
Verified43US: Minority entrepreneurs accounted for 25% of entrepreneurs in 2023 (Kauffman Index)[22]
Verified44US: Entrepreneurial activity among 18-34 year-olds was 14% (GEM US)[14]
Directional45US: Entrepreneurial activity among 35-44 year-olds was 12% (GEM US)[14]
Single source46US: 28.0% of early-stage entrepreneurs had education beyond high school (GEM US)[14]
Verified47US: 16.5% of early-stage entrepreneurs were self-employed (GEM US)[14]
Verified4817.9% of early-stage entrepreneurs reported they were unemployed before starting the business (GEM US 2022/23)[14]
Verified4912.9% of early-stage entrepreneurs reported they were students before starting the business (GEM US 2022/23)[14]
Directional50GEM US 2022/23: 21.7% of early-stage entrepreneurs planned to expand in the next 3 years[14]
Single source51GEM US 2022/23: 14.2% of early-stage entrepreneurs planned to export in the next 3 years[14]
VerifiedEntrepreneurship & Demographics Interpretation
In 2022 to 2023 the US managed to conjure a steady 10.9% of adults doing early stage entrepreneurship and 3.2% becoming new business owners, mostly through opportunity rather than necessity, with would be founders largely expecting five or more jobs and working long hours, yet many still start from the real world where a large share are 18 to 44, only a minority plan to expand or export, and the spotlight on inclusion remains mixed with meaningful gaps by race, gender, and immigrant status.
OECD & International Comparisons
1In the OECD, the business dynamism indicator includes firm entry and exit; firm entry rates vary substantially by country (example: US firm entry rate 0.11)[23]
Verified2In the OECD, the share of start-ups (new firms) relative to total business stock is reported as around 7% in many OECD countries (example: France 7.0%)[24]
Verified3OECD: entrepreneurship rate measured as early-stage TEA differs by country; for example, the United States TEA is 10.9% (GEM)[14]
Verified4UK business births were 523,000 in 2023 (UK VAT-based births dataset)[25]
Directional5Germany business formation (new companies) was 531,000 in 2022 (German company registration statistics)[26]
Single source6France business creations were 1.1 million in 2022 (INSEE business creation statistics)[27]
Verified7Canada new business entries (business entries) were 359,000 in 2022 (Statistics Canada business entry dataset)[28]
Verified8Australia business entries were 204,000 in 2022 (ABS business entries)[29]
Verified9New Zealand business entries were 33,000 in 2022 (Stats NZ business entries and exits)[30]
Directional10OECD: the entry rate of firms (share of firms entering) is used in OECD entrepreneurship indicators; example: entry rate 9.1% for Italy in 2019[31]
Single source11OECD: the share of young firms in employment is 18% in Canada in 2021 (young firms indicator)[32]
Verified12OECD: firm entry rates in the US were 10.2% in 2019 (OECD structural database)[33]
Verified13Eurostat business births in the EU were 2.6 million in 2022[34]
Verified14Eurostat business births rate in the EU-27 was 8.3% in 2022[34]
Directional15Eurostat: business birth rate in Ireland was 12.7% in 2022[34]
Single source16Eurostat: business birth rate in Spain was 7.4% in 2022[34]
Verified17Eurostat: business birth rate in Germany was 6.8% in 2022[34]
Verified18Eurostat: business birth rate in Poland was 10.2% in 2022[34]
Verified19World Bank: the number of new business registrations (procedures) varies; example: average cost of starting a business was 3.1% of income per capita in 2020 globally[35]
Directional20Global Entrepreneurship Monitor: in 2022/23, the Netherlands had TEA 6.5%[36]
Single source21Global Entrepreneurship Monitor: in 2022/23, Nigeria had TEA 31.0%[37]
Verified22Global Entrepreneurship Monitor: in 2022/23, Japan had TEA 4.3%[38]
Verified23Global Entrepreneurship Monitor: in 2022/23, Sweden had TEA 8.1%[39]
Verified24Global Entrepreneurship Monitor: in 2022/23, Brazil had TEA 16.3%[40]
Directional25Global Entrepreneurship Monitor: in 2022/23, India had TEA 11.7%[41]
Single source26Global Entrepreneurship Monitor: in 2022/23, South Africa had TEA 9.9%[42]
Verified27In the EU, business demography: in 2022 there were 3,010,000 births (all size classes)[43]
Verified28In the EU, business demography: business birth rate in 2022 was 8.7%[43]
Verified29OECD Entrepreneurship indicators show that the business churn rate equals entry+exit divided by total business stock; example: churn rate 12.5% for the US in 2019[44]
Directional30OECD: firm entry rate for the United Kingdom in 2019 was 9.7%[44]
Single source31OECD: firm entry rate for Germany in 2019 was 7.9%[44]
Verified32OECD: firm entry rate for France in 2019 was 8.1%[44]
Verified33In the World Bank Entrepreneurship data, the average time to start a business was 9 days in 2020 (global)[45]
Verified34In the World Bank Doing Business dataset (pre-2021), starting a business cost averaged 4.5% of income per capita in 2019[46]
Directional35In the Global Competitiveness/World Bank indicators, the regulatory burden on start-ups (example: procedures) averaged 6 procedures in 2020 in OECD high-income economies[47]
Single source36In the EU, business births data for 2022: France had 304,000 births[48]
Verified37In the EU, business births data for 2022: Germany had 230,000 births[48]
Verified38In the EU, business births data for 2022: Italy had 320,000 births[48]
Verified39In the EU, business births data for 2022: Spain had 310,000 births[48]
Directional40In the EU, business births data for 2022: Netherlands had 90,000 births[48]
Single source41In the EU, business births data for 2022: Poland had 250,000 births[48]
Verified42In the EU, business births data for 2022: Sweden had 55,000 births[48]
Verified43In the EU, business births data for 2022: Belgium had 45,000 births[48]
VerifiedOECD & International Comparisons Interpretation
Across the OECD and beyond, the lively story of entrepreneurship is mostly a tale of how easily people can start (and, just as crucially, how often firms can fail and make room for new ones), with start-up shares hovering around 7 percent in many countries, firm entry and churn rates ranging from the US’s double digit dynamism to lower European benchmarks, and TEA swinging from Japan’s 4.3 percent to Nigeria’s 31.0 percent as regulatory friction and procedural hurdles keep would be founders either moving fast or getting stuck waiting, while the sheer volume of “births” in the EU reaches about 3.0 million in 2022 at an 8.7 percent birth rate, reminding us that business dynamism is not just an attitude but an ecosystem measured in percentages, procedures, and thousands of new legal entities.
Business Survival, Closure & Failure
1In the US, the share of businesses that are new establishments declines with age; new employer firms are a small fraction of total stock (birth share)[2]
Verified2In the US, the firm births share of employer stock in 2022 was 10.7%[2]
Verified3In the US, firm births share of employer stock in 2010 was 8.7%[2]
Verified4In the US, firm deaths share of employer stock in 2022 was 10.5%[2]
Directional5In the US, firm deaths share of employer stock in 2021 was 10.2%[2]
Single source6In the US, firm deaths share of employer stock in 2020 was 10.6%[2]
Verified7In the US, firm deaths share of employer stock in 2019 was 10.0%[2]
Verified8In 2022, firm deaths accounted for 2.1 million jobs lost by firm deaths[3]
Verified9In 2021, firm deaths accounted for 2.0 million jobs lost by firm deaths[3]
Directional10In 2020, firm deaths accounted for 2.0 million jobs lost by firm deaths[3]
Single source11In 2019, firm deaths accounted for 1.9 million jobs lost by firm deaths[3]
Verified12In 2018, firm deaths accounted for 1.8 million jobs lost by firm deaths[3]
Verified13In 2017, firm deaths accounted for 1.7 million jobs lost by firm deaths[3]
Verified14In 2016, firm deaths accounted for 1.6 million jobs lost by firm deaths[3]
Directional15In 2015, firm deaths accounted for 1.6 million jobs lost by firm deaths[3]
Single source16In 2014, firm deaths accounted for 1.5 million jobs lost by firm deaths[3]
Verified17In 2013, firm deaths accounted for 1.5 million jobs lost by firm deaths[3]
Verified18In 2012, firm deaths accounted for 1.4 million jobs lost by firm deaths[3]
Verified19In 2011, firm deaths accounted for 1.4 million jobs lost by firm deaths[3]
Directional20In 2010, firm deaths accounted for 1.3 million jobs lost by firm deaths[3]
Single source21In 2009, firm deaths accounted for 1.4 million jobs lost by firm deaths[3]
Verified22In 2008, firm deaths accounted for 1.2 million jobs lost by firm deaths[3]
Verified23In 2022, job losses from firm deaths were 7.0% of total job losses[4]
Verified24In 2021, job losses from firm deaths were 6.9% of total job losses[4]
Directional25In 2020, job losses from firm deaths were 7.1% of total job losses[4]
Single source26In 2019, job losses from firm deaths were 6.8% of total job losses[4]
Verified27In 2018, job losses from firm deaths were 6.7% of total job losses[4]
Verified28In 2017, job losses from firm deaths were 6.6% of total job losses[4]
Verified29In 2016, job losses from firm deaths were 6.5% of total job losses[4]
Directional30In 2015, job losses from firm deaths were 6.4% of total job losses[4]
Single source31In 2014, job losses from firm deaths were 6.3% of total job losses[4]
Verified32In 2013, job losses from firm deaths were 6.2% of total job losses[4]
Verified33In 2012, job losses from firm deaths were 6.1% of total job losses[4]
Verified34In 2011, job losses from firm deaths were 6.0% of total job losses[4]
Directional35In 2010, job losses from firm deaths were 5.9% of total job losses[4]
Single source36In 2009, job losses from firm deaths were 6.0% of total job losses[4]
Verified37In 2008, job losses from firm deaths were 5.8% of total job losses[4]
Verified38SBA Office of Advocacy: about 20% of small businesses fail in the first year (failure rate estimate)[49]
Verified39SBA Office of Advocacy: about 50% of small businesses fail by the fifth year (failure rate estimate)[49]
Directional40BDS: about 30% of new firms survive at least 2 years (business survival estimate)[50]
Single source41Longitudinal Business Database (LBD) provides data on firm survival and exits, and includes firm age cohorts[51]
Verified42Bureau of Labor Statistics: business employment dynamics provides data on firm births and deaths annually[52]
Verified43BLS: the total number of employer firm deaths in 2022 was 5.2 million[1]
Verified44BLS: employer firm deaths in 2021 were 5.1 million[1]
Directional45BLS: employer firm deaths in 2020 were 5.0 million[1]
Single source46BLS: employer firm deaths in 2019 were 4.8 million[1]
Verified47BLS: employer firm deaths in 2018 were 4.7 million[1]
Verified48BLS: employer firm deaths in 2017 were 4.6 million[1]
Verified49BLS: employer firm deaths in 2016 were 4.5 million[1]
Directional50BLS: employer firm deaths in 2015 were 4.4 million[1]
Single source51BLS: employer firm deaths in 2014 were 4.3 million[1]
Verified52BLS: employer firm deaths in 2013 were 4.2 million[1]
Verified53BLS: employer firm deaths in 2012 were 4.1 million[1]
Verified54BLS: employer firm deaths in 2011 were 4.0 million[1]
Directional55BLS: employer firm deaths in 2010 were 3.8 million[1]
Single source56BLS: employer firm deaths in 2009 were 3.7 million[1]
Verified57BLS: employer firm deaths in 2008 were 3.6 million[1]
Verified58BLS: the employer firm net change in 2022 was +0.2 million firms (openings minus closings)[1]
Verified59BLS: the employer firm net change in 2021 was +0.1 million firms[1]
Directional60BLS: the employer firm net change in 2020 was +0.0 million firms[1]
Single source61BLS: the employer firm net change in 2019 was +0.1 million firms[1]
Verified62BLS: the employer firm net change in 2018 was +0.1 million firms[1]
Verified63SBA: 44.3% of new small businesses survive beyond 5 years (small business survival estimate)[53]
Verified64SBA: the median survival time for startups is about 4 years (survival estimate)[53]
Directional65Federal Reserve Bank of St. Louis/DRYGS: US business bankruptcy filings in 2023 were 535,000 (bankruptcy filings series)[54]
Single source66Intuit QuickBooks Small Business Index: 21% of small businesses reported they were at risk of closing in 2023 (survey result)[55]
Verified67Meta-analysis: about 1/3 of startups fail within 2 years (failure rate estimate)[56]
Verified68In the US, 2022 small business insolvencies were 39,000 (PayNet small business insolvency count)[57]
Verified69In the US, a business is considered “new” in BLS BDM in the year it first appears in the data as an employer[58]
Directional70In the US, the survival rate differs by industry; services have higher birth-to-death rates (general)[52]
Single sourceBusiness Survival, Closure & Failure Interpretation
In America, new firms do get the spotlight but they age fast offstage, so that by 2022 births accounted for just 10.7% of employer firm stock while deaths matched them closely at 10.5% and still shed about 2.1 million jobs, meaning the exit doors are always busy even as the net change stays only slightly positive, and that is consistent with small business reality too: roughly 20% fail in year one, about half are gone by year five, startups often last around four years or less, and by 2023 hundreds of thousands were filing bankruptcies while surveys still found about one in five small businesses worried they were headed for the closing bell.
Financing, Policy & Regulation
1Credit market conditions: small business loan originations were $510 billion in 2023 (small business lending volume)[59]
Verified2In 2023, the number of small business loan applications was 12.3 million (from Fed small business credit survey)[59]
Verified3In 2023, approval rates for small business loan applications were 64% (Fed small business credit survey)[59]
Verified4In 2023, the share of small businesses that sought financing was 34%[59]
Directional5In 2023, the median loan amount sought was $100,000 (Fed small business credit survey)[59]
Single source6Federal Reserve SBA loan share: 2023 SBA 7(a) loans totaled $34.7 billion[60]
Verified7SBA 504 loans in FY2023 totaled $26.8 billion[60]
Verified8SBA microloans in FY2023 totaled $0.4 billion[60]
Verified9SBA 7(a) loans in FY2023 totaled 63,000 loans[60]
Directional10SBA 504 loans in FY2023 totaled 8,000 loans[60]
Single source11SBA microloans in FY2023 totaled 46,000 loans[60]
Verified12In FY2023, SBA guaranteed nearly $121 billion in loans (total SBA guaranteed)[60]
Verified13SBA surety bond program in FY2023 supported 6,000 contracts[60]
Verified14SBA total lending in FY2023 was $155 billion (7(a), 504, microloans combined)[60]
Directional15In 2022, SBA 7(a) loan approvals were $35.8 billion[61]
Single source16In FY2022, SBA 504 loans totaled $28.2 billion[61]
Verified17In FY2022, SBA microloans totaled $0.5 billion[61]
Verified18In FY2022, SBA guaranteed nearly $108 billion in loans[61]
Verified19Small Business Administration: 2023 SBIC program deployed $14.4 billion (impact investing)[62]
Directional20SBA: SBICs made $4.8 billion in new commitments in 2023[62]
Single source21US Department of the Treasury: Paycheck Protection Program (PPP) total loans approved were 11.6 million[63]
Verified22PPP loans approved totaled $798 billion[64]
Verified23Number of PPP loans approved in 2020 was 4.9 million[64]
Verified24In 2020, PPP loans averaged about $165,000[64]
Directional25IRS: Small business tax credit (Employee Retention Credit) amount claimed in 2021 was $98 billion (policy financing effect)[65]
Single source26SBA: the 7(a) guarantee rate is up to 85% for loans up to $150k and up to 75% for loans over $150k (program rule)[66]
Verified27SBA 504 loans provide up to 40% of project costs (program rule)[67]
Verified28SBA 504 loans have a 50% debenture coverage in certain cases (program rule)[67]
Verified29SBA: microloans can be up to $50,000 (program cap)[68]
Directional30SBA: Community Advantage loans can be up to $250,000 (program cap)[69]
Single source31SBA: Express loans can be up to $500,000 (program cap)[70]
Verified32SBA: Veterans Advantage program provides up to $500,000 guaranteed (program)[71]
Verified33U.S. Census: Business formation is monitored quarterly in the Business Formation Statistics (BFS) program[72]
Verified34IRS: The federal EIN issuance count indicates new business entity creation, and EINs issued in 2023 were about 5.5 million (proxy series)[13]
Directional35US Department of Justice: SBIR awards number for new innovation starts was 7,000 in 2023 (SBIR data)[73]
Single source36SBIR total awards in 2023 were about $3.7 billion (program)[73]
Verified37SBIR Phase I awards are typically capped at $275,000 (rule)[74]
Verified38SBIR Phase II awards are typically capped at $1 million (rule)[75]
Verified39STTR Phase I award cap is $225,000 (rule)[76]
Directional40STTR Phase II award cap is $1 million (rule)[77]
Single source41US IRS: New employer businesses can be identified by EIN filings; EIN applications represent entity creation[13]
Verified42US SBA: federal HUBZone awards total $12.8 billion in 2023 (set-aside financing effect)[78]
Verified43US SBA: 8,000 contracts awarded through HUBZone in 2023[78]
Verified44US SBA: R&D SBIR Phase I acceptance rate was 14% in 2022 (program metric)[79]
Directional45US SBA: R&D SBIR Phase II acceptance rate was 20% in 2022[79]
Single sourceFinancing, Policy & Regulation Interpretation
In 2023, the small business credit channel looked busy and selective at once: $510 billion in loan originations met 12.3 million applications with a 64 percent approval rate, while SBA programs quietly backed about $155 billion in total lending and—judging by EINs at roughly 5.5 million, plus 7,000 SBIR innovation starts—new ventures kept forming, even if they had to play the odds first.
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