Summary:
430,000 new business applications per month in 2024, a 50% increase from 2019.
40% of individuals pursue their passion through entrepreneurship.
Small businesses employ nearly half of the U.S. workforce and account for 43.5% of GDP.
Idaho leads with a 6.55% growth in small businesses.
Only West Virginia and New York saw no growth or decline, respectively.
The Surge of Entrepreneurship in the U.S.
Millions of Americans are becoming entrepreneurs. In 2024, the U.S. is averaging 430,000 new business applications per month, which is a 50% increase compared to 2019, according to the U.S. Department of the Treasury.
Over 40% of individuals are following their passion into entrepreneurship, and nearly 30% are starting businesses for the flexibility and autonomy that comes with being their own boss, as reported by SCORE, a provider of business resources and mentorship.
The Role of Small Businesses in the Economy
Small businesses employ nearly half of the American workforce and account for 43.5% of America's GDP (U.S. Chamber of Commerce). However, a staggering 50% of small businesses fail within five years, according to the Bureau of Labor Statistics.
Importance of Location for Success
Location significantly impacts a business's long-term survival and growth. A study by OnDeck analyzed the latest small business data from the U.S. Census (2020-2021) to determine which states have the fastest-growing number of new small businesses.
Key Findings
- Idaho emerged as the state with the fastest-growing small businesses, seeing an impressive 6.55% increase year over year.
- West Virginia showed no growth, and New York experienced a 0.05% decline.
Growth Across the U.S.
Overall, nearly every state has shown some level of growth in small businesses, with only two exceptions: West Virginia and New York.
Image Credit: Courtesy of OnDeck
For a complete state-by-state analysis of where small businesses thrive across the U.S., check out the detailed report by OnDeck.
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