The data, released on January 11, 2024, reveals that in 2023 alone, an astonishing 5.5 million new business applications were filed. This surge in entrepreneurship is attributed to President Biden’s Investing in America agenda, which has created conducive conditions for small business growth and resilience.
Administrator Isabel Casillas Guzman, who is leading the SBA, highlighted this remarkable achievement. “More Americans than ever are pursuing their dreams of business ownership as the rate of new business applications filed and establishments under President Biden continues to surge,” she stated. The record five and a half million new business applications in the last year emphasize the diverse and increasing participation of Black, Latino, and women founders in the entrepreneurial landscape.
The Biden-Harris Administration’s initiatives, including the American Rescue Plan, Bipartisan Infrastructure Law, and Inflation Reduction Act, have significantly contributed to this growth. These historic federal investments have closed capital access gaps and increased outreach to underserved entrepreneurs, fostering a competitive business environment both domestically and internationally.
This small business boom is not just about numbers. It’s about the real establishment of businesses and the creation of jobs. With 1.3 million private establishments added since the start of the Biden Administration and a 5.4% annual pace of establishment growth, small businesses have been a driving force in the U.S. economy. Moreover, the U.S. economy added 7.2 million small business jobs from 2021 through the first quarter of 2023, with each quarter showing significant growth.
The growth in minority and women entrepreneurship is particularly noteworthy. Black business ownership has doubled from 5% to 11% between 2019 and 2022, experiencing the fastest growth in 30 years. Latino business ownership has also seen a significant rise. Furthermore, the growth rate of women-owned businesses was 94% greater than that of men-owned businesses from 2019 to 2023.
Diverse industries, from tech startups to Main Street businesses, have seen substantial growth. Retail, professional services, and construction lead in application growth, and innovative sectors have experienced about 40% growth in establishment numbers.
The SBA’s role in supporting this boom is evident in its lending activities. Loans to minority and women-owned businesses have seen a substantial increase, with a record-breaking $3 billion in loans to Latino-owned businesses in FY23. Additionally, loans to veteran-owned businesses have also shown significant growth.
The Biden-Harris Administration’s comprehensive approach, with laws like the CHIPS and Science Act and investments in infrastructure and broadband access, has set the stage for this small business renaissance. The record $163 billion in federal procurement opportunities awarded to small businesses in 2022 further underscores this commitment.
This surge in small business applications and growth under the Biden-Harris Administration represents a significant shift in the U.S. economic landscape. It reflects the entrepreneurial spirit of Americans and the government’s role in nurturing an environment where small businesses can thrive. This trend is a beacon of hope for aspiring entrepreneurs and a testament to the resilience and innovation at the heart of the American economy.
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This article, “The SBA Says 5.5 Million New Business Applications Filed in 2023” was first published on Small Business Trends