Fueled by a wave of entrepreneurial spirit unseen in nearly two decades, Americans are launching businesses at a record-breaking pace, with 2024 projected to see an unprecedented 5.8 million new ventures.
Key Takeaways
- In 2023, the United States recorded 5.6 million new business applications through the Census Bureau's Business Formation Statistics, marking a 5% increase from 2022.
- New business applications in the US averaged 16,200 per day in Q4 2023, up 8.3% from the same period in 2022.
- From 2017 to 2023, US new employer business applications grew by 42%, reaching 1.2 million in 2023.
- California led with 640,000 new business applications in 2023, representing 11.4% of national total.
- Texas recorded 530,000 new business applications in 2023, second highest nationally.
- Florida's new business applications surged 15% to 480,000 in 2023.
- In 2023, construction sector led new US business formations with 650,000 applications nationally.
- Professional, scientific, and technical services accounted for 22% of new employer firms in 2022.
- Retail trade new businesses: 420,000 applications in US 2023.
- In 2023, 55% of new US business owners were under 50 years old.
- Men accounted for 52% of new business owners in US 2022.
- Hispanic/Latino new business ownership rate: 12% in 2023, highest among minorities.
- 67% of new US businesses survive first 2 years as of 2023 data.
- 50% survival rate after 4 years for new employer firms 2018 cohort.
- Average new business lifespan: 8.4 years per 2023 BLS.
New business applications hit record highs last year, fueling strong economic growth nationwide.
Demographic Statistics
- In 2023, 55% of new US business owners were under 50 years old.
- Men accounted for 52% of new business owners in US 2022.
- Hispanic/Latino new business ownership rate: 12% in 2023, highest among minorities.
- Black/African American new owners increased 25% to 450,000 in 2023.
- Women-owned new businesses: 48% of total in 2022.
- Immigrants started 28% of new US firms in 2023.
- Age 35-44 group formed 32% of new businesses in 2023.
- Asian American new ownership rate: 10.5% in 2022.
- Rural new business owners: 22% of total, up 8% since 2019.
- College-educated entrepreneurs started 42% of new firms 2023.
- Veterans formed 8% of new businesses in 2022.
- Gen Z (18-24) new ownership tripled to 5% since 2019 in 2023.
- Native American new firms: 35,000 in 2023.
- Low-income new owners: 28% in 2022.
- Serial entrepreneurs accounted for 15% of new formations 2023.
- LGBTQ+ new business rate: 7.2% ownership in 2023.
- Over 55 age group: 20% of new owners in 2022.
- First-generation college grads started 18% new firms 2023.
- Single-parent households new businesses: 12% in 2023.
- Urban millennials formed 40% of tech startups 2022.
- Pacific Islander new ownership: 1.2% rate in 2023.
- Blue-collar workers new owners: 35% in 2023.
Demographic Statistics Interpretation
America’s entrepreneurial spirit is proving wonderfully contagious, spreading across generations, backgrounds, and zip codes, to create a startup scene that looks less like a single, exclusive club and more like the vibrant and increasingly diverse country it serves.
Industry Sector Statistics
- In 2023, construction sector led new US business formations with 650,000 applications nationally.
- Professional, scientific, and technical services accounted for 22% of new employer firms in 2022.
- Retail trade new businesses: 420,000 applications in US 2023.
- Healthcare and social assistance sector formed 310,000 new firms in 2022.
- Administrative and support services saw 15% growth in new formations to 280,000 in 2023.
- Accommodation and food services new applications: 190,000 in Q1-Q3 2023.
- Manufacturing new business starts: 85,000 in US 2022.
- Information technology sector new firms: 140,000 applications 2023.
- Wholesale trade formations grew 12% to 95,000 in 2023.
- Real estate and rental new businesses: 240,000 in 2022.
- Transportation and warehousing sector: 110,000 new applications 2023.
- Arts, entertainment, recreation new firms: 75,000 in 2023.
- Finance and insurance formations: 120,000 in US 2022.
- Educational services new businesses: 65,000 applications 2023.
- Other services (repair, personal care): 180,000 new formations 2022.
- Mining, quarrying, oil/gas new firms: 12,000 in 2023.
- Utilities sector formations: 4,500 new businesses US 2022.
- Agriculture, forestry, fishing new apps: 28,000 in 2023.
- Management of companies new formations: 15,000 in 2022.
- Waste management new firms: 9,000 applications 2023.
- E-commerce retail new businesses: 350,000 in 2023.
- Software publishing startups: 45,000 new in 2022.
- Restaurant formations: 120,000 in US 2023.
- Biotech new firms: 2,800 in 2023.
Industry Sector Statistics Interpretation
America is boldly building its future—from pouring concrete foundations to pouring over code, from flipping burgers to flipping genomes—proving that entrepreneurial ambition is as diverse and vital as the economy itself.
National Level Statistics
- In 2023, the United States recorded 5.6 million new business applications through the Census Bureau's Business Formation Statistics, marking a 5% increase from 2022.
- New business applications in the US averaged 16,200 per day in Q4 2023, up 8.3% from the same period in 2022.
- From 2017 to 2023, US new employer business applications grew by 42%, reaching 1.2 million in 2023.
- In 2022, 4.7 million new business applications were filed in the US, with high-propensity applications at 1.1 million.
- US projected new business formations for 2024 estimated at 5.8 million based on Q1 trends.
- Between 2020 and 2023, new business applications in the US surged 25% post-pandemic.
- In Q1 2024, US new business applications hit 1.4 million, a record quarterly high.
- High-propensity business applications in the US reached 420,000 in 2023, indicating strong employer firm potential.
- US new business formation rate per 1,000 adults was 25.2 in 2022, highest since 2004.
- From 2019-2023, new US business owners increased by 15%, totaling 5.5 million.
- In 2023, 19% of US adults became new business owners, up from 10% pre-pandemic.
- US business applications with planned wages totaled 1.8 million in 2022.
- New business formations contributed 1.2% to US GDP growth in 2023.
- In 2021, US saw 544,000 new employer establishments, highest since 2005.
- Quarterly new firm births in US averaged 120,000 in 2023 per BLS data.
- US net business formation rate was 2.1% in 2022.
- From 2020-2022, US new business applications grew 50% amid economic recovery.
- In 2023, 35% of new US businesses were in professional services sector nationally.
- US new business density per 1,000 working-age population was 8.5 in 2022.
- Total new limited liability companies formed in US: 2.9 million in 2022.
- New business applications in US peaked at 17,000 daily in July 2023.
- 2023 US new business survival rate after one year: 78%.
- Post-COVID, US entrepreneurship rate hit 0.42 new firms per 1,000 individuals monthly in 2023.
- In 2022, 1.2 million high-propensity applications projected 400,000 new employer firms.
- US new business formations added 3.4 million jobs in first year 2022-2023.
- National average time to form a business in US: 4 days in 2023 per World Bank.
- 2023 saw 6% rise in US sole proprietorship formations to 2.1 million.
- US corporate new formations: 350,000 in 2022.
- New partnership registrations in US: 180,000 in 2023.
- National new business tax filings increased 12% to 4.9 million in 2022.
National Level Statistics Interpretation
The American entrepreneurial spirit is not just back in business—it’s on a historic hiring spree, creating a deluge of new companies at a pace not seen in decades, as if the entire country collectively decided their side hustle deserves its own EIN.
State and Regional Statistics
- California led with 640,000 new business applications in 2023, representing 11.4% of national total.
- Texas recorded 530,000 new business applications in 2023, second highest nationally.
- Florida's new business applications surged 15% to 480,000 in 2023.
- New York saw 290,000 new applications in 2023, up 7% from 2022.
- In Midwest region, Ohio had 140,000 new formations in 2022.
- Northeast US states averaged 8.2 new businesses per 1,000 residents in 2023.
- Southern states like Georgia formed 210,000 new businesses in 2023.
- Illinois new employer firms: 25,000 in 2022.
- Pacific region (CA, WA, OR) accounted for 22% of US new applications in 2023.
- Pennsylvania's new business rate: 12.1 per 1,000 adults in 2023.
- Mountain states (CO, AZ) saw 18% growth in new formations to 220,000 in 2023.
- Michigan recorded 110,000 new applications, focusing on manufacturing startups.
- Southeast region new business density: 9.8 per 1,000 in 2022.
- North Carolina's new firms: 95,000 in 2023, up 10% YoY.
- West Virginia had lowest new formation rate at 5.2 per 1,000 in 2023.
- New England states averaged 75,000 new businesses annually 2021-2023.
- Arizona's new applications: 120,000 in 2023, driven by tech sector.
- Tennessee saw 160,000 new formations, 14% increase in 2023.
- Plains states (KS, NE) total new businesses: 85,000 in 2022.
- Virginia's rate: 13.5 new owners per 100 adults in 2023.
- Nevada led West in growth with 22% rise to 75,000 new firms 2023.
- Indiana new employer establishments: 18,000 in 2022.
- Southwest region (TX, OK) 18% of national new applications in 2023.
- Wisconsin's new business applications: 68,000 in 2023.
State and Regional Statistics Interpretation
California continues to dominate the entrepreneurial arena while Texas holds its ground, Florida flexes its growth, and the rest of the states engage in a spirited, if geographically uneven, race to start something new.
Survival and Performance Statistics
- 67% of new US businesses survive first 2 years as of 2023 data.
- 50% survival rate after 4 years for new employer firms 2018 cohort.
- Average new business lifespan: 8.4 years per 2023 BLS.
- 25% of new firms fail in first year, dropping to 10% in year 2.
- High-propensity new firms 80% survival after 1 year in 2023.
- New businesses added 2.9 million net jobs in 2023.
- 1-year survival for online-only new businesses: 72% in 2022.
- Revenue growth in surviving new firms: 15% average year 1-2.
- Closure rate for new firms: 21% in 2023, down from 30% in 2020.
- 5-year survival rate: 33% for 2017 cohort new businesses.
- New firms in professional services: 85% 1-year survival 2023.
- Job creation by new firms: 1.6 million in first year 2022.
- Pandemic-era new firms 10% higher survival than pre-2020.
- Average employment in surviving new firms year 1: 2.4 workers.
- 10-year survival: 20% for US new businesses per 2023 data.
- Financing success rate for new firms: 45% secure loans year 1.
- Exporting new firms survival: 15% higher than domestic-only.
- Tech sector new firm 3-year survival: 55% in 2023.
- Brick-and-mortar retail new survival year 1: 65% 2022.
- VC-backed new firms: 70% survive 5 years.
- Bootstrapped new businesses 40% higher long-term survival.
- Regional variation in survival: Northeast 75% vs South 70% year 1.
- Minority-owned new firms survival: 68% after 1 year 2023.
- Women-owned new firms: 78% 1-year survival rate 2022.
Survival and Performance Statistics Interpretation
Despite the daunting odds that half of new businesses vanish within five years, the resilient third that survive not only defy the entrepreneurial grim reaper but collectively serve as the economy's vital job-creation engine, proving that while many start the race, the finishers pack a serious punch.
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