SMEs are thriving – new businesses are being

During a pandemic-era marked by shutdowns, labor shortages, supply chain disruptions and inflation, there has also been a surge in applications to start new businesses. Entrepreneurship has taken off at unprecedented levels.

Since August 2020, applications filed to start new businesses have averaged around 400,000 per month. Prior to the pandemic, they hovered around 300,000 per month, according to U.S. Census Bureau data. There are signs that this is not just a pandemic-era trend. At the end of 2022, entrepreneurship was still booming.

The trend isn’t surprising if you have spent time with an entrepreneur or small business owner. Entrepreneurs solve problems, and when America experienced huge problems in a concentrated time frame, entrepreneurs rose to the occasion. New economic needs and changing consumer preferences created more circumstances for new businesses to start.

For example, City Bonfires was founded in 2020 when Michael Opalski, a restaurant industry salesman, and neighbor Chris McCasland, who owned a restaurant and worked in the entertainment industry, were worried about their jobs. They got together to create a portable, reusable mini bonfire device suitable for apartment porches and hikes — and perfect for home-bound workers craving fresh air.

The widespread boom in entrepreneurship is a huge benefit for communities and a great sign for the U.S. economy. As new businesses grow, they are likely to employ more people in the community and fuel the local economy. About one-third of current new business applications are marked "high-propensity," meaning they are likely to hire.

Entrepreneurship can also be a path of opportunity for minorities, women, veterans, young entrepreneurs and immigrants to realize their dreams. There was a 33% increase in Black male business owners in 2020 and 2021, according to a study, and a 22% increase in Black female business owners.

Our country’s unique free enterprise system allows for this kind entrepreneurial growth, and Congress and the administration should be doing everything possible to ensure these new businesses grow and succeed. The U.S. Chamber of Commerce details how elected officials can foster new entrepreneurs’ freedom to exist and thrive in the Small Business Bill of Rights.

Great bipartisan work happened in reaction to the devastation brought to small business by COVID-19 when Congress passed seven laws in 12-months, all specifically designed to help small business. It should not take a national disaster to fuel smart policy that benefits small business.