A remarkable wave of entrepreneurial energy has swept across the United States in the first three years of President Biden’s term. According to a White House statement on January 11, 2024, Americans filed over 16 million new business applications during that period—an all-time high and the strongest three-year stretch on record. This surge represents a monthly average of roughly 440,000 applications, which is about 46% higher than averages from 2017 to 2020.
Diversity among entrepreneurs is a significant driver of this trend. The share of Black-owned businesses has doubled, while Hispanic ownership rose by 40% since 2019. Federal datasets and fact‑checks, including those by PolitiFact, confirm that this represents the fastest growth in Black-owned small businesses in over three decades.
SBA Administrator Isabel Casillas Guzman praised the spike in 2023’s applications—a record 5.5 million new filings—and underscored how the “Investing in America” agenda, including the American Rescue Plan, Bipartisan Infrastructure Law, and Inflation Reduction Act, is catalyzing this surge.
Economists often use business applications as a leading economic indicator, and this boom suggests strong future job creation and productivity. The White House’s Council of Economic Advisers reported that a substantial portion of these filings are likely “employer applications,” with over 5 million signaling intent to hire—an approximately 35% increase over pre‑2021 averages. Concerns that this was a byproduct of gig‑economy formations or pandemic‑era tax advantages appear largely unfounded, according to the analysis.
Still, small businesses face headwinds. Bank of America Institute reports show small firms are managing tighter credit conditions and elevated interest rates, causing some to rely more on credit cards and encounter strained balance sheets. For example, small-business credit card balances have climbed, even though loan demand appears modestly softening. However, promising signs remain: deposits are robust—about 20% above pre-pandemic levels—and interest rate relief could steer firms back toward traditional bank financing .
Bank of America also notes that while credit card utilization is high, lower interest rates and improving financial liquidity may be easing strains and supporting an uptick in loan payment volume.
This entrepreneurial momentum has not gone unnoticed in political spheres. Some analysts attribute the surge to changing workforce preferences post-COVID and the proliferation of digital tools, while others credit federal policy interventions like targeted loans and infrastructure investments.
The broader economic context paints a positive picture: employment has grown by over 14 million since January 2021, and the unemployment rate has remained below 4% for the longest stretch in half a century. Core inflation has declined significantly, and wage levels have risen, helping to foster a climate conducive to small business formation.
Looking ahead, Census Bureau data from June 2024 shows that the trend may continue, with over 18.1 million business applications filed since 2021—pouring in at a rate more than 90% faster than pre-pandemic levels.
In sum, this wave of new business applications reflects more than just optimism—it marks a fundamental shift in the small-business landscape. Underpinned by strong policy support, economic resilience, and rising entrepreneurial diversity, the U.S. appears poised for sustained small-business activity and job growth. Yet, the sector’s long-term health will depend on its ability to secure financing, adapt to changing economic conditions, and translate applications into lasting, growth-oriented enterprises.
