Stephanie Ferguson Stephanie Ferguson
Director, Global Employment Policy & Special Initiatives, U.S. Chamber of Commerce
Lindsay Cates Lindsay Cates
Senior Manager, Communications and Strategy, U.S. Chamber of Commerce

Published

February 02, 2024

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Entrepreneurship is booming in the United States. Over the last few years, the number of applications filed to start new businesses has surged. Application numbers doubled in 2020 compared to recent years, and 2021 and 2022 saw over 5 million applications filed, according to the U.S. Census Bureau.

The trend only accelerated in 2023, with a record-breaking 5.5 million new business applications filed. Explore the data below to understand the new business formation trends across the nation and in your state.

For each state, the interactive map below tracks:

  • Percent change of new business applications between December 2022 and December 2023
  • Number of new business applications filed in 2023
  • State’s ranking of business applications per capita in each state
  • The projected business formations within four quarters
  • Percentage of applications projected to become employer businesses
  • The congressional district(s) with the highest number of new business applications

New Business Applications by State

Click on a state for more details.

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0-15
15.1-30
30.1-45
45.1+

Alabama

  • 0.5%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 71,835
    New business applications in 2023
  • #26
    Ranking of 2023 business applications per capita
  • 4,222
    2023 projected business formations within 4 quarters
  • 5.9%
    Percent of applications projected to become an employer business

Alaska

  • -1.8%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 8,929
    New business applications in 2023
  • #33
    Ranking of 2023 business applications per capita
  • 795
    2023 projected business formations within 4 quarters
  • 8.9%
    Percent of applications projected to become an employer business

Arizona

  • 5.3%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 125,822
    New business applications in 2023
  • #15
    Ranking of 2023 business applications per capita
  • 7,895
    2023 projected business formations within 4 quarters
  • 6.3%
    Percent of applications projected to become an employer business

Arkansas

  • 1.8%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 39,048
    New business applications in 2023
  • #34
    Ranking of 2023 business applications per capita
  • 2,764
    2023 projected business formations within 4 quarters
  • 7.1%
    Percent of applications projected to become an employer business

California

  • 7.8%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 558,011
    New business applications in 2023
  • #25
    Ranking of 2023 business applications per capita
  • 51,568
    2023 projected business formations within 4 quarters
  • 9.2%
    Percent of applications projected to become an employer business

Colorado

  • 115.0%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 142,927
    New business applications in 2023
  • #5
    Ranking of 2023 business applications per capita
  • 7,930
    2023 projected business formations within 4 quarters
  • 5.5%
    Percent of applications projected to become an employer business

Connecticut

  • 10.2%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 48,373
    New business applications in 2023
  • #31
    Ranking of 2023 business applications per capita
  • 3,003
    2023 projected business formations within 4 quarters
  • 6.2%
    Percent of applications projected to become an employer business

Delaware

  • 19.3%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 55,389
    New business applications in 2023
  • #2
    Ranking of 2023 business applications per capita
  • 2,294
    2023 projected business formations within 4 quarters
  • 4.1%
    Percent of applications projected to become an employer business

District of Columbia

  • -5.6%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 14,831
    New business applications in 2023
  • #7
    Ranking of 2023 business applications per capita
  • 589
    2023 projected business formations within 4 quarters
  • 4.0%
    Percent of applications projected to become an employer business

Florida

  • -3.0%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 667,031
    New business applications in 2023
  • #3
    Ranking of 2023 business applications per capita
  • 32,523
    2023 projected business formations within 4 quarters
  • 4.9%
    Percent of applications projected to become an employer business

Georgia

  • -9.9%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 277,626
    New business applications in 2023
  • #4
    Ranking of 2023 business applications per capita
  • 12,456
    2023 projected business formations within 4 quarters
  • 4.5%
    Percent of applications projected to become an employer business

Hawaii

  • 6.1%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 19,159
    New business applications in 2023
  • #29
    Ranking of 2023 business applications per capita
  • 895
    2023 projected business formations within 4 quarters
  • 4.7%
    Percent of applications projected to become an employer business

Idaho

  • 10.1%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 31,338
    New business applications in 2023
  • #17
    Ranking of 2023 business applications per capita
  • 2,978
    2023 projected business formations within 4 quarters
  • 9.5%
    Percent of applications projected to become an employer business

Illinois

  • 12.0%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 174,667
    New business applications in 2023
  • #27
    Ranking of 2023 business applications per capita
  • 10,880
    2023 projected business formations within 4 quarters
  • 6.2%
    Percent of applications projected to become an employer business

Indiana

  • 13.0%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 94,057
    New business applications in 2023
  • #28
    Ranking of 2023 business applications per capita
  • 5,905
    2023 projected business formations within 4 quarters
  • 6.3%
    Percent of applications projected to become an employer business

Iowa

  • 33.7%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 33,444
    New business applications in 2023
  • #48
    Ranking of 2023 business applications per capita
  • 2,717
    2023 projected business formations within 4 quarters
  • 8.1%
    Percent of applications projected to become an employer business

Kansas

  • 8.7%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 33,268
    New business applications in 2023
  • #42
    Ranking of 2023 business applications per capita
  • 2,659
    2023 projected business formations within 4 quarters
  • 8.0%
    Percent of applications projected to become an employer business

Kentucky

  • 20.0%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 55,265
    New business applications in 2023
  • #37
    Ranking of 2023 business applications per capita
  • 3,626
    2023 projected business formations within 4 quarters
  • 6.6%
    Percent of applications projected to become an employer business

Louisiana

  • -8.6%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 80,457
    New business applications in 2023
  • #11
    Ranking of 2023 business applications per capita
  • 3,149
    2023 projected business formations within 4 quarters
  • 3.9%
    Percent of applications projected to become an employer business

Maine

  • 26.8%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 14,086
    New business applications in 2023
  • #50
    Ranking of 2023 business applications per capita
  • 1,601
    2023 projected business formations within 4 quarters
  • 11.4%
    Percent of applications projected to become an employer business

Maryland

  • 0.5%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 101,704
    New business applications in 2023
  • #16
    Ranking of 2023 business applications per capita
  • 4,623
    2023 projected business formations within 4 quarters
  • 4.5%
    Percent of applications projected to become an employer business

Massachusetts

  • 7.0%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 76,375
    New business applications in 2023
  • #47
    Ranking of 2023 business applications per capita
  • 7,078
    2023 projected business formations within 4 quarters
  • 9.3%
    Percent of applications projected to become an employer business

Michigan

  • -2.6%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 148,508
    New business applications in 2023
  • #24
    Ranking of 2023 business applications per capita
  • 7,445
    2023 projected business formations within 4 quarters
  • 5.0%
    Percent of applications projected to become an employer business

Minnesota

  • 26.3%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 69,210
    New business applications in 2023
  • #39
    Ranking of 2023 business applications per capita
  • 4,898
    2023 projected business formations within 4 quarters
  • 7.1%
    Percent of applications projected to become an employer business

Mississippi

  • -6.4%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 53,237
    New business applications in 2023
  • #10
    Ranking of 2023 business applications per capita
  • 2,287
    2023 projected business formations within 4 quarters
  • 4.3%
    Percent of applications projected to become an employer business

Missouri

  • 11.7%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 90,384
    New business applications in 2023
  • #23
    Ranking of 2023 business applications per capita
  • 6,055
    2023 projected business formations within 4 quarters
  • 6.7%
    Percent of applications projected to become an employer business

Montana

  • 29.5%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 23,789
    New business applications in 2023
  • #8
    Ranking of 2023 business applications per capita
  • 1,855
    2023 projected business formations within 4 quarters
  • 7.8%
    Percent of applications projected to become an employer business

Nebraska

  • 11.5%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 21,574
    New business applications in 2023
  • #43
    Ranking of 2023 business applications per capita
  • 2,124
    2023 projected business formations within 4 quarters
  • 9.8%
    Percent of applications projected to become an employer business

Nevada

  • 0.6%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 65,986
    New business applications in 2023
  • #9
    Ranking of 2023 business applications per capita
  • 4,520
    2023 projected business formations within 4 quarters
  • 6.8%
    Percent of applications projected to become an employer business

New Hampshire

  • 10.1%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 16,179
    New business applications in 2023
  • #44
    Ranking of 2023 business applications per capita
  • 1,419
    2023 projected business formations within 4 quarters
  • 8.8%
    Percent of applications projected to become an employer business

New Jersey

  • -1.0%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 160,996
    New business applications in 2023
  • #12
    Ranking of 2023 business applications per capita
  • 9,188
    2023 projected business formations within 4 quarters
  • 5.7%
    Percent of applications projected to become an employer business

New Mexico

  • 20.4%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 33,865
    New business applications in 2023
  • #18
    Ranking of 2023 business applications per capita
  • 1,760
    2023 projected business formations within 4 quarters
  • 5.2%
    Percent of applications projected to become an employer business

New York

  • 8.1%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 313,481
    New business applications in 2023
  • #20
    Ranking of 2023 business applications per capita
  • 22,638
    2023 projected business formations within 4 quarters
  • 7.2%
    Percent of applications projected to become an employer business

North Carolina

  • 6.5%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 170,924
    New business applications in 2023
  • #19
    Ranking of 2023 business applications per capita
  • 11,976
    2023 projected business formations within 4 quarters
  • 7.0%
    Percent of applications projected to become an employer business

North Dakota

  • 37.7%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 8,960
    New business applications in 2023
  • #40
    Ranking of 2023 business applications per capita
  • 901
    2023 projected business formations within 4 quarters
  • 10.1%
    Percent of applications projected to become an employer business

Ohio

  • 1.9%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 148,623
    New business applications in 2023
  • #36
    Ranking of 2023 business applications per capita
  • 7,816
    2023 projected business formations within 4 quarters
  • 5.3%
    Percent of applications projected to become an employer business

Oklahoma

  • 10.9%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 58,195
    New business applications in 2023
  • #22
    Ranking of 2023 business applications per capita
  • 3,771
    2023 projected business formations within 4 quarters
  • 6.5%
    Percent of applications projected to become an employer business

Oregon

  • 12.8%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 56,662
    New business applications in 2023
  • #32
    Ranking of 2023 business applications per capita
  • 4,778
    2023 projected business formations within 4 quarters
  • 8.4%
    Percent of applications projected to become an employer business

Pennsylvania

  • 13.8%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 153,599
    New business applications in 2023
  • #41
    Ranking of 2023 business applications per capita
  • 9,817
    2023 projected business formations within 4 quarters
  • 6.4%
    Percent of applications projected to become an employer business

Rhode Island

  • 3.4%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 11,639
    New business applications in 2023
  • #49
    Ranking of 2023 business applications per capita
  • 1,155
    2023 projected business formations within 4 quarters
  • 9.9%
    Percent of applications projected to become an employer business

South Carolina

  • -2.2%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 92,138
    New business applications in 2023
  • #13
    Ranking of 2023 business applications per capita
  • 5,384
    2023 projected business formations within 4 quarters
  • 5.8%
    Percent of applications projected to become an employer business

South Dakota

  • 20.6%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 11,311
    New business applications in 2023
  • #35
    Ranking of 2023 business applications per capita
  • 1,114
    2023 projected business formations within 4 quarters
  • 9.8%
    Percent of applications projected to become an employer business

Tennessee

  • 8.2%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 96,903
    New business applications in 2023
  • #30
    Ranking of 2023 business applications per capita
  • 6,446
    2023 projected business formations within 4 quarters
  • 6.7%
    Percent of applications projected to become an employer business

Texas

  • 4.4%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 501,398
    New business applications in 2023
  • #14
    Ranking of 2023 business applications per capita
  • 35,113
    2023 projected business formations within 4 quarters
  • 7.0%
    Percent of applications projected to become an employer business

Utah

  • 21.5%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 71,877
    New business applications in 2023
  • #6
    Ranking of 2023 business applications per capita
  • 5,608
    2023 projected business formations within 4 quarters
  • 7.8%
    Percent of applications projected to become an employer business

Vermont

  • 0.2%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 7,516
    New business applications in 2023
  • #45
    Ranking of 2023 business applications per capita
  • 645
    2023 projected business formations within 4 quarters
  • 8.6%
    Percent of applications projected to become an employer business

Virginia

  • 2.7%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 132,075
    New business applications in 2023
  • #21
    Ranking of 2023 business applications per capita
  • 7,781
    2023 projected business formations within 4 quarters
  • 5.9%
    Percent of applications projected to become an employer business

Washington

  • 6.8%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 97,603
    New business applications in 2023
  • #38
    Ranking of 2023 business applications per capita
  • 9,181
    2023 projected business formations within 4 quarters
  • 9.4%
    Percent of applications projected to become an employer business

West Virginia

  • 5.5%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 15,297
    New business applications in 2023
  • #51
    Ranking of 2023 business applications per capita
  • 1,025
    2023 projected business formations within 4 quarters
  • 6.7%
    Percent of applications projected to become an employer business

Wisconsin

  • -1.7%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 65,409
    New business applications in 2023
  • #46
    Ranking of 2023 business applications per capita
  • 4,318
    2023 projected business formations within 4 quarters
  • 6.6%
    Percent of applications projected to become an employer business

Wyoming

  • 29.5%
    The percentage change of new business applications filed in December 2023 compared to December 2022
  • 58,807
    New business applications in 2023
  • #1
    Ranking of 2023 business applications per capita
  • 2,330
    2023 projected business formations within 4 quarters
  • 4.0%
    Percent of applications projected to become an employer business

The Census Bureau’s projected business formations are based on a forward-looking econometric model. This model estimates the likelihood a business application turns into a full-fledged business utilizing data and trends from the preceding four quarters and eight quarters from the month of application. A complete list of the Bureau’s business formation statistics definitions can be viewed here.

The data for states that have significantly higher incorporation rates compared to their population may not accurately reflect projected business formations in those states.

Download the national, state, and county business formation data here. 

Why There Are So Many New Businesses 

Entrepreneurs solve problems, and when America experienced huge problems in a concentrated time frame during the COVID-19 pandemic, entrepreneurs rose to the occasion. New economic needs and changing consumer preferences created more circumstances for new businesses to start. 

Many individuals laid off as a result of pandemic shutdowns turned their ideas and hobbies into a business that could be run from home. The number of non-store retailers skyrocketed as individuals sold goods from home.

Professional and business services also experienced an uptick as entrepreneurs tapped into the need for consulting services. This trend held true in 2023, with most business applications being filed for enterprises in the retail trade and professional services industries.

America’s unique free enterprise system allows for this kind of entrepreneurial growth. And the data clearly shows Americans are hungry to start their own small businesses.

Starting a business is a cornerstone of the American Dream and allows individuals to solve problems, strengthen society, and earn an income. Additionally, higher costs have prompted individuals to earn additional money through the creation of multiple business entities.

Padded savings and more availability of credit card debt from the pandemic shutdown can serve as a nest egg while an entrepreneur is working to get their business off the ground. Greater access to technology in recent years has also allowed smaller operations across the nation—and the globe—to grow and level the playing field with large firms.

In addition to the record-high number of applications being filed, the projected number of new business formations that could emerge from those applications is increasing, too. On average, 9.5% of business applications lead to business formations from 2016 to 2019.

Between 2020 and 2023, there were 20.4 million business applications filed, so if past formations as a share of applications are comparable today, we’d expect 1.9 million businesses, or 9.5% of applications, to result in businesses employing workers.

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.

Government must support policy that supports the creation of new business, not hinder it, as new businesses bring more opportunity to our communities. As new businesses grow, they are likely to employ more people in the community and fuel the local economy.

Small Business Resources

Find the latest from the U.S. Chamber’s small business advocacy and resources.

About the authors

Stephanie Ferguson

Stephanie Ferguson

Stephanie Ferguson is the Director of Global Employment Policy & Special Initiatives. Her work on the labor shortage has been cited in the Wall Street Journal, Washington Post, and Associated Press.

Read more

Lindsay Cates

Lindsay Cates

Lindsay is a senior manager on the communications and strategy team. She previously worked as a writer and editor at U.S. News and World Report.

Read more