Favorable conditions have small businesses thriving

When more entrepreneurs can start and grow their businesses, it drives economic opportunity, creates local jobs, strengthens the middle class, and diversifies our economy. Democrats in Congress passed vital investments in the economic recovery and key infrastructure that laid the groundwork for a record-breaking 16 million new business applications from 2021 through 2023. This increase far outpaces business growth under the former president, or under any past Republican. Democrats’ policies are working for American small business owners across the country and the next chapter in economic opportunity is underway.

Small business entrepreneurship is thriving

From 2021 through 2023, the United States saw 16 million new business applications; more than any other three-year period in history. This stretch included an annual record of 5.5 million new businesses applications in 2023.

This growth is happening throughout the country, with business applications higher in 2023 than in 2019 and in all 50 states and the District of Columbia (see table on page 3).

For example, new business applications in New Mexico surged from about 17,500 in 2019 to approximately 34,000 in 2023, with continued growth in early 2024.

The U.S. averaged 443,302 monthly business applications though the first 3+ years of President Biden’s first term, significantly higher than the 282,362 applications under Trump during the same amount of time in office.

A recent survey of entrepreneurs found that small business owners’ outlook on the economy is at a 22-year high.