The U.S. experienced a new business and entrepreneurship boom in 2021 as the number of new business applications reached a record high. Thanks to the American Rescue Plan and other emergency measures, the Biden administration helped over 6 million businesses with over $400 billion in relief, particularly those run by Black, Hispanic and Asian business owners who were hit hard by the pandemic. These policies helped existing businesses survive, and the robust economic recovery led to a record number of new business applications in 2021.New business applications hit a record high under President Biden in 2021.
Americans submitted 5.4 million applications for new businesses in 2021 alone. This marks the highest level recorded by the U.S. Census Bureau. This number of new business applications was also 68% higher than the average number of filings during the five years before the pandemic.
Applications for the types of new business that are more likely to hire employees (high-propensity businesses) also hit a record high of 1.8 million in 2021 under President Biden. Businesses that hire employees are at the heart of job and wealth creation. These businesses help owners build wealth and help employees achieve economic and employment security. In 2021, there were 1.8 million applications for these likely-to-hire businesses, the highest number of applications on record. In fact, the number of high-propensity business filings in President Biden’s first year are 42% higher than the average number of applications in the five years before the pandemic.
All 50 states and Washington, D.C. had more new business applications in 2021 than the annual average in the five years before the pandemic. The record boom in business applications in 2021 took place all across the country, with 31 states and the District of Columbia seeing over 50% more applications than the pre-pandemic annual average , including six states where applications more than doubled.
With the American Rescue Plan and other emergency measures, President Biden helped provide over 6 million businesses with more than $400 billion in aid
Through the American Rescue Plan (ARP) and emergency relief measures, President Biden helped over 6 million businesses with over $400 billion in relief. The administration has ensured equitable access for marginalized communities via the Small Business Administration Community Navigator Pilot Program, which helps local governments and organizations support entrepreneurs starting their own business or finding the support they need to stay open and thrive.