In a resounding testament to the resilience and ingenuity of the American entrepreneurial spirit, the number of startups less than a year old has surged by an impressive 16% between 2019 and 2023, surpassing pre-Great Recession levels for the first time, according to a new analysis from the Center of American Progress.
The data paints a striking picture of the entrepreneurial renaissance sweeping across the nation. Between January 2021 and December 2023, a staggering 5.2 million entrepreneurs in the United States filed for "likely employer" business applications, fueling the startup boom and injecting new life into the country's economic landscape.
The fourth quarter of 2023 witnessed a particularly remarkable surge, with 450,000 entrepreneurs filing business applications, a remarkable 37% increase compared to the same period in 2019. This upward trajectory was echoed across every state, with Wyoming leading the charge with an astonishing 93% surge, and even Alaska, the state with the lowest increase, still witnessing a respectable 15% rise.
This surge in new business applications can be attributed, in part, to the federal government's concerted efforts to support and encourage entrepreneurship during the turbulent pandemic era. The American Rescue Plan, the CHIPS and Science Act, and the Inflation Reduction Act all played pivotal roles in fostering an environment conducive to small business growth and innovation.
The surge in new business applications is not just a statistical anomaly; it is a tangible indicator of the economy's recovery from the pandemic-era recession. As these fledgling enterprises take root and blossom, they will undoubtedly contribute to job creation, economic growth, and the diversification of the nation's business landscape.
While the road ahead may be paved with challenges and uncertainties, the entrepreneurial spirit that has defined America for generations remains undaunted. As the nation continues to navigate the post-pandemic landscape, this surge in startups stands as a beacon of hope, a testament to the indomitable drive and ingenuity that have always been the hallmarks of American entrepreneurship.
