The entrepreneurial spirit is flourishing: a surge in the number of businesses

The latest data signals something unusual growth of entrepreneurship and business establishment, a significant economic rebound after the COVID-19 pandemic. The slowdown in latest business creation has reversed, and indicators point to a thriving startup ecosystem.

According to a study by the Center for American Progress, there was a noticeable increase in business applications between January 2021 and December 2023, especially those classified as “likely employer.” 5.2 million applications represent a rise of 34% in comparison with the pre-pandemic years from 2017 to 2019.

“The increase in the number of business applications is a strong signal of economic recovery,” said a representative of the Center for American Progress. “It demonstrates confidence in the market and creates opportunities for job creation, increased productivity and increased competition.”

This trend extends across the country, with every state and Washington, D.C. seeing a rise in likely applications from employers. Wyoming saw a staggering 93% increase, indicating a widespread revival in entrepreneurship.

Further evaluation shows a corresponding increase in the number of startups – corporations operating lower than a yr – above pre-Great Recession levels for the first time. The rapid increase in the number of enterprises goes beyond the immediate consequences of the pandemic and its dynamics will proceed until 2023.

“This increase in startup activity is a milestone in economic recovery,” the economist said. “It not only replenishes lost land, but also supports a dynamic business landscape conducive to innovation and growth.”

The reasons behind this increase are changes in work and lifestyle dynamics post-pandemic. Additionally, supportive public policies resembling the American Rescue Plan have stimulated the entrepreneurial spirit. Measures resembling financial support for families and businesses, combined with a solid economic recovery, have created an environment conducive to the creation and expansion of businesses.

“The American Rescue Plan played a critical role in providing a needed boost to emerging entrepreneurs,” noted the policy expert. “By strengthening economic stability and reducing financial risk, it has enabled individuals to realize their entrepreneurial aspirations.”

Moreover, targeted policies to develop small businesses have further increased this growth. Initiatives resembling increased access to capital programs and support for minority-owned businesses have facilitated a diverse and inclusive entrepreneurial landscape.

“The Biden administration’s commitment to supporting small businesses is clear,” the analyst noted. “Through strategic investments and policy frameworks, it continues to develop a vibrant entrepreneurial ecosystem poised for sustainable growth.”