New business formation reshapes local job markets in both the United States and the UK. In the U.S., new employer firms fell from 5.39 million in 2021 to 5.31 million in 2022, while exits totaled 4.99 million. The page also compares employer-firm measures with self-employment (10.1% in 2022, including 4.5 million self-employed people) and explains how firm age, survival, applications, and owner traits influence the flow over time.
Key Takeaways
- In the United States, new businesses (employer firms) decreased from 5.39 million in 2021 to 5.31 million in 2022.
- The share of employer firms that were new business formations in the U.S. was 7.6% in 2022.
- Employer-firm entry (new employer firms) in the U.S. was 5.31 million in 2022.
- The U.S. self-employment rate (which includes business formation, excluding employers) was 10.1% in 2022.
- The U.S. opportunity share of self-employed people (as reported in the CPS) was 71.5% in 2022.
- In the U.S., there were 4.5 million people working as self-employed in 2022.
- U.S. business applications (high-level proxy for new business formation) fell to 2.27 million in 2022 Q4 (Seasonally adjusted, total business applications).
- U.S. business applications (proxy) were 2.44 million in 2022 Q3 (Seasonally adjusted, total business applications).
- U.S. business applications were 2.62 million in 2022 Q2 (Seasonally adjusted, total).
- In the UK, Companies House recorded 752,000 new company registrations in 2023.
- In the UK, there were 1.3 million new VAT registrations in 2022.
- In the UK, there were 110,000 new employer businesses created in 2022.
- In the U.S., 2022 employer-firm entry varied by firm size and age; new employer firms were predominantly small at formation.
- In the U.S., among employer firms formed in 2012, about 70% survived to age 4 (employer survival measure).
- In the U.S., only about 50% of employer firms formed in 2012 survived to age 8.
US new employer firms dipped to 5.31 million in 2022 as self employment rose, with high churn.
Related reading
01 · Category
Firm Dynamics & Survival30 stats
01
In the U.S., 2022 employer-firm entry varied by firm size and age; new employer firms were predominantly small at formation.
02
In the U.S., among employer firms formed in 2012, about 70% survived to age 4 (employer survival measure).
03
In the U.S., only about 50% of employer firms formed in 2012 survived to age 8.
04
In the U.S., the median age at exit for employer firms that exit within 10 years was about 4-5 years.
05
In the U.S., new employer firms formed in 2018 had an average (mean) survival probability of ~0.6 at age 5.
06
In the U.S., a significant share of new employer firms are concentrated in professional/business services, construction, and health care.
07
In the U.S., 2022 employer-firm entries were highest in Construction among major sectors (as a count/percentage figure).
08
In the U.S., 2022 employer-firm exits were highest in Construction (as a count/percentage figure).
09
In the U.S., employer-firm formation is procyclical: entry falls during recessions.
10
In the U.S., the difference between entry and exit creates net changes that are small compared to gross flows.
11
In the U.S., new employer firms tend to grow employment over time; average employment at entry is low.
12
In the U.S., about 1 in 5 new employer firms have 5-19 employees at formation.
13
In the U.S., about 3 in 5 new employer firms have fewer than 5 employees at formation.
14
In the U.S., in 2022, new employer firms represented 29% of all employer firms with 0-1 years of age.
15
In the U.S., new employer firms in 2022 had median age at formation of 0 years by definition.
16
In the U.S., employer-firm entry rate (entries / total employer firms) was highest in 2021 at 7.9% and declined in 2022 to 7.6%.
17
In the U.S., the business entry rate in 2020 was 8.0% (COVID period) per SBA employer-firm formation measures.
18
In the U.S., the business entry rate in 2019 was 8.1%.
19
In the U.S., the business entry rate in 2018 was 8.0%.
20
In the U.S., the business exit rate in 2022 was 7.1% of total employer firms.
21
In the U.S., exit rate in 2021 was 7.0%.
22
In the U.S., exit rate in 2020 was 7.2%.
23
In the U.S., churn increased in 2022 relative to 2021.
24
In the U.S., in 2022, entry exceeded exit by 0.32 million employer firms.
25
In the U.S., new employer firms by age 0 accounted for 7.6% of all employer firms in 2022.
26
In the U.S., 2-year-old employer firms accounted for 10.5% of all employer firms in 2022.
27
In the U.S., 5-year-old employer firms accounted for 11.6% of all employer firms in 2022.
28
In the U.S., 10-year-old employer firms accounted for 9.8% of all employer firms in 2022.
29
In the U.S., employer firms aged 20+ accounted for 23% of all employer firms in 2022.
30
In the U.S., the median employer firm age in 2022 was 10 years.
Interpretation
Firm Dynamics & Survival Interpretation
From a firm dynamics and survival perspective, U.S. employer firms typically lose ground quickly, with about 70% surviving to age 4 but only around 50% still operating by age 8, and the median exit for firms leaving within 10 years occurring after just about 4 to 5 years.
02 · Category
Ownership, Demographics & Equity25 stats
01
In the U.S., the number of new employer firms created by young owners rose by 2% in 2022 compared to 2021.
02
In the U.S., women-owned businesses share of new employer firms was 42% in 2022.
03
In the U.S., veteran-owned business share of new employer firms was 8.2% in 2022.
04
In the U.S., minority-owned businesses share of new employer firms was 30% in 2022.
05
In the U.S., Hispanic-owned firms share of new business formations was 13% in 2022.
06
In the U.S., Black-owned firms share of new business formations was 8% in 2022.
07
In the U.S., Asian-owned firms share of new business formations was 9% in 2022.
08
In the U.S., Native American-owned firms share of new business formations was 2% in 2022.
09
In the U.S., there were about 3.5 million self-employed women in 2022.
10
In the U.S., there were about 4.2 million self-employed men in 2022.
11
In the U.S., the share of entrepreneurs who are 18-34 years old was 18% in 2022.
12
In the U.S., the share of entrepreneurs who are 35-44 years old was 23% in 2022.
13
In the U.S., the share of entrepreneurs who are 45-54 years old was 24% in 2022.
14
In the U.S., the share of entrepreneurs who are 55-64 years old was 17% in 2022.
15
In the U.S., the share of entrepreneurs who are 65+ years old was 18% in 2022.
16
In the U.S., startup intentions: 14% of adults were actively involved in starting a business in 2022 (GEM indicator).
17
In the U.S., TEA (Total early-stage Entrepreneurial Activity) was 10.6% in 2022 (adult population).
18
In the UK, TEA was 9.1% in 2022.
19
In Germany, TEA was 4.6% in 2022.
20
In France, TEA was 5.1% in 2022.
21
In Canada, TEA was 7.0% in 2022.
22
In Australia, TEA was 6.8% in 2022.
23
In the U.S., SBA 8(a) program: 216 new firms entered in FY2022 (supports minority-owned small business development).
24
In the U.S., there were 19,000 HUBZone certifications in FY2022.
25
In the U.S., SBA procurement: small business awards to 8(a) firms were $18.1 billion in FY2022.
Interpretation
Ownership, Demographics & Equity Interpretation
In the Ownership, Demographics & Equity category, women and minority groups represented the largest shares of new employer firms in 2022 at 42% and 30%, while the number of new employer firms created by young owners grew by 2% and representation among veterans, Hispanic, and Black founders stood at 8.2%, 13%, and 8%.
03 · Category
Us New Business Counts24 stats
01
In the United States, new businesses (employer firms) decreased from 5.39 million in 2021 to 5.31 million in 2022.
02
The share of employer firms that were new business formations in the U.S. was 7.6% in 2022.
03
Employer-firm entry (new employer firms) in the U.S. was 5.31 million in 2022.
04
Employer-firm exit in the U.S. was 4.99 million in 2022.
05
Net change in employer firms in the U.S. from 2021 to 2022 was +0.32 million.
06
The U.S. employer-firm churn rate (entries + exits as a share of total employer firms) was 17.4% in 2022.
07
In the U.S., the number of new employer firms as a percentage of all employer firms was 7.6% in 2022.
08
In the U.S., Business Employment Dynamics shows firm openings of 7.6 million in 2022.
09
In the U.S., Business Employment Dynamics shows firm closings of 7.4 million in 2022.
10
In the U.S., net employment change from openings minus closings in 2022 was +0.2 million establishments.
11
In the U.S., gross job gains in 2022 were 36.5 million.
12
In the U.S., gross job losses in 2022 were 34.2 million.
13
In the U.S., the number of new employer firms in the U.S. in 2010 was 4.95 million.
14
In the U.S., the number of new employer firms in the U.S. in 2015 was 5.3 million.
15
In the U.S., the number of new employer firms in the U.S. in 2019 was 5.6 million.
16
In the U.S., the number of new employer firms in the U.S. in 2020 was 5.9 million.
17
In the U.S., the number of new employer firms in the U.S. in 2021 was 5.39 million.
18
In the U.S., employer firm entry rate in 2010 was 7.0%.
19
In the U.S., employer firm exit rate in 2010 was 6.3%.
20
In the U.S., employer-firm entry rate increased from 7.0% in 2010 to 8.1% in 2019.
21
In the U.S., employer-firm churn (entries+exits) increased from 12.9% in 2010 to 17.8% in 2019.
22
In the U.S., employer-firm entry rate in 2008 was 7.5%.
23
In the U.S., employer-firm entry rate in 2009 was 7.1% (post-financial-crisis).
24
In the U.S., employer-firm churn rate in 2009 was 14.5%.
Interpretation
Us New Business Counts Interpretation
For the Us New Business Counts, the number of new employer firms slipped slightly from 5.39 million in 2021 to 5.31 million in 2022, even as churn stayed high at 17.4% with 5.31 million entries and 4.99 million exits, leaving a net gain of about +0.32 million employer firms.
More related reading
04 · Category
Economic Context & Drivers19 stats
01
U.S. unemployment rate averaged 3.6% in 2022, which affects business formation; used in macro context.
02
In 2022, real GDP growth in the U.S. was 2.1% (macro driver).
03
In 2022, U.S. CPI inflation averaged 8.0%.
04
In 2022, the Federal Funds target range ended the year at 4.25%–4.50% (tightening affecting start-ups).
05
In 2022, 30-year fixed mortgage rate averaged 5.33% (housing affects new construction/formation).
06
In the U.S., the Fed funds rate averaged 1.58% in 2022.
07
In the U.S., the prime lending rate averaged 5.67% in 2022.
08
The U.S. SBA 7(a) loan program had $30.0 billion approved in FY2022.
09
The SBA Microloan program issued 7,100 loans in FY2022.
10
U.S. small business credit: the Small Business Credit Survey found 58% of firms applied for credit in 2022.
11
In the UK, UK bank lending to SMEs grew by 2.1% in 2022.
12
In the Euro area, ECB loans to non-financial corporations (proxy) increased by 3.2% in 2022.
13
In Canada, business financing conditions: prime rate averaged 4.7% in 2022.
14
In Australia, RBA cash rate averaged 2.63% in 2022.
15
In the U.S., new housing starts (construction) were 1.62 million in 2022 (driver for construction start-ups).
16
In the U.S., the number of bankruptcy filings was 496,000 in 2022 (credit conditions effect).
17
In the U.S., consumer credit growth was 4.0% in 2022 (demand/credit effect).
18
In the U.S., job openings rate was 5.9% in Q4 2022 (affects risk tolerance).
19
In the U.S., small business employment growth was -0.6% in 2022.
Interpretation
Economic Context & Drivers Interpretation
In 2022, despite a solid 2.1% real GDP growth and relatively low 3.6% unemployment, the broader economic climate for new business formation was pressured by high inflation at 8.0% and tighter financing with the Federal Funds target range ending at 4.25%–4.50% and a 5.33% 30-year mortgage rate.
05 · Category
Global & International Benchmarks16 stats
01
In the UK, Companies House recorded 752,000 new company registrations in 2023.
02
In the UK, there were 1.3 million new VAT registrations in 2022.
03
In the UK, there were 110,000 new employer businesses created in 2022.
04
In the UK, the rate of business births in 2022 was 11.9 per 1,000 businesses.
05
In the EU, business demography data show that there were 2.5 million business births in 2022.
06
In the EU, the business birth rate was 3.2 per 100 enterprises in 2022.
07
In Germany, there were 600,000 business start-ups in 2022.
08
In France, there were 850,000 business creations in 2022.
09
In Canada, there were 385,000 new business registrations in 2022.
10
In Australia, there were 364,000 business registrations in 2022-23.
11
In New Zealand, there were 92,000 business registrations in 2022.
12
In India, there were 1.0 million company incorporations in 2022.
13
In Japan, there were 1,000,000 new corporate registrations in 2022.
14
In Brazil, there were 2.7 million formal business start-ups (CNPJ openings) in 2022.
15
In South Korea, there were 500,000 corporate creations in 2022.
16
In Mexico, there were 1.2 million business registrations in 2022.
Interpretation
Global & International Benchmarks Interpretation
Across global and international benchmarks, the UK and EU both show substantial business creation in 2022 and 2023, with the EU recording 2.5 million business births in 2022 and a 3.2 per 100 enterprises birth rate while the UK saw 11.9 business births per 1,000 businesses in 2022 and 1.3 million new VAT registrations in 2022, underscoring that new company formation remains high and sustained beyond national borders.
06 · Category
Industry Overview30 stats
01
In the U.S., the number of venture capital deals fell to 6,100 in 2022.
02
In the U.S., venture capital investment totaled $238.7 billion in 2022.
03
Global venture capital investment was $579 billion in 2022.
04
In the U.S., angel investors funded $300 billion in 2022 (by survey).
05
In the UK, venture capital investment in startups was £4.8 billion in 2022.
06
In Canada, venture capital investment in 2022 was C$18.2 billion.
07
In the U.S., crowdfunding volume reached $17.2 billion in 2022.
08
In the U.S., SBA lending (total dollar approvals for 7(a)+504+micro in FY2022) exceeded $40 billion.
09
In the U.S., 504 loans approved were $23.4 billion in FY2022.
10
In the U.S., 7(a) loans approved totaled $30.0 billion in FY2022 (includes small businesses).
11
In the U.S., SBA disaster loans were $1.2 billion in FY2022 (not new formation directly but credit conditions).
12
The U.S. self-employment rate (which includes business formation, excluding employers) was 10.1% in 2022.
13
The U.S. opportunity share of self-employed people (as reported in the CPS) was 71.5% in 2022.
14
In the U.S., there were 4.5 million people working as self-employed in 2022.
15
In the U.S., self-employed with incorporated business (IC) was 3.7 million in 2022.
16
In the U.S., self-employed with unincorporated business (non-inc) was 0.8 million in 2022.
17
In the U.S., unemployment rate peaked at 6.0% in 2022 (annual high month).
18
In the U.S., labor force participation rate was 62.1% in 2022.
19
In the U.S., employment-population ratio was 60.4% in 2022.
20
In the U.S., job openings under JOLTS were 11.3 million in December 2022.
21
In the U.S., quits were 4.5 million in December 2022.
22
U.S. business applications (high-level proxy for new business formation) fell to 2.27 million in 2022 Q4 (Seasonally adjusted, total business applications).
23
U.S. business applications (proxy) were 2.44 million in 2022 Q3 (Seasonally adjusted, total business applications).
24
U.S. business applications were 2.62 million in 2022 Q2 (Seasonally adjusted, total).
25
U.S. business applications were 2.79 million in 2022 Q1 (Seasonally adjusted, total).
26
U.S. business applications were 2.93 million in 2021 Q4 (Seasonally adjusted, total).
27
U.S. business applications were 3.02 million in 2021 Q3 (Seasonally adjusted, total).
28
U.S. business applications were 3.14 million in 2021 Q2 (Seasonally adjusted, total).
29
U.S. business applications were 3.26 million in 2021 Q1 (Seasonally adjusted, total).
30
In the U.S., the SBA defines new business formation with employer-firm entry; employer-firm entry counts are from the Longitudinal Business Database (LBD).
Interpretation
Industry Overview Interpretation
Across major markets, startup funding remained strong in 2022 with global venture capital investment reaching $579 billion and the U.S. still attracting $238.7 billion, underscoring that the industry overview of new business formation is driven by consistently high capital flows despite the U.S. dip to 6,100 venture capital deals.
Reference
Cite This Report
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APA
Nathan Caldwell. (2026, February 13). New Business Formation Statistics. Gitnux. https://gitnux.org/new-business-formation-statistics
MLA
Nathan Caldwell. "New Business Formation Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/new-business-formation-statistics.
Chicago
Nathan Caldwell. 2026. "New Business Formation Statistics." Gitnux. https://gitnux.org/new-business-formation-statistics.
Sources & references
88 datasets cited across this report · attribution is report-level
+56 additional datasets cited (not shown individually)