Small businesses are an economic pillar in the United States. Businesses with fewer than 500 employees account for two-thirds of net new jobs in the U.S. and generate 44% of economic activity nationwide, according to the U.S. Small Business Administration.
Though small businesses in the U.S. were hit hard by the COVID-19 pandemic, with an estimated one-third closing either temporarily or permanently since early 2020, American entrepreneurs appear undeterred.
From January 2021 through January 2022, over 5.8 million applications for new businesses were filed, according to Business Formation Statistics from the U.S Census Bureau – or 1,772 for every 100,000 Americans.
Minnesota accounted for 70,033 of all new business applications filed nationwide over the same period, the 25th fewest among states. Adjusting for population, however, there were 1,242 applications for every 100,000 people in Minnesota, lower than the national average and the 14th lowest among states.
Minnesota saw the most applications submitted in January 2021, at 5,983, while June 2021 marked a low point over the period with just 4,962 new business applications. It is important to note that not all new business applications result in the creation of a new business, and only about 80% of new businesses last for more than a year.
|Rank||State||New business applications per 100,000 people||Total new business applications, Jan. 2021-Jan. 2022|