
Director, Global Employment Policy & Special Initiatives, U.S. Chamber of Commerce
Published
February 14, 2023
American ingenuity and innovation is back in businesses. Entrepreneurship is booming in the United States. According to the World Economic Forum, total U.S. Business applications doubled in 2020 compared to recent years. In 2021 alone, a record breaking 5.4 million new business applications were filed, and nearly as many 5.1 million were filed in 2022.
For each state the interactive map below tracks:
- The increase in new business applications since 2019
- State’s ranking of business applications per capita in each state
- Number of new business applications filed in 2022
- The projected business formations within four quarters
- Percentage of applications projected to become employer businesses
New Business Applications by State
Click on a state for more details.
Alabama
- 71.2%More business applications filed in 2022 than in 2019
- 71,146New business applications in 2022
- #21Ranking of 2022 business applications per capita
- 4,4152022 projected business formations within 4 quarters
- 6%Percent of applications projected to become an employer business
Alaska
- 4.2%More business applications filed in 2022 than in 2019
- 8,509New business applications in 2022
- #35Ranking of 2022 business applications per capita
- 8482022 projected business formations within 4 quarters
- 10%Percent of applications projected to become an employer business
Arizona
- 50.3%More business applications filed in 2022 than in 2019
- 115,670New business applications in 2022
- #16Ranking of 2022 business applications per capita
- 7,9262022 projected business formations within 4 quarters
- 7%Percent of applications projected to become an employer business
Arkansas
- 47.9%More business applications filed in 2022 than in 2019
- 37,756New business applications in 2022
- #30Ranking of 2022 business applications per capita
- 2,9912022 projected business formations within 4 quarters
- 8%Percent of applications projected to become an employer business
California
- 33%More business applications filed in 2022 than in 2019
- 490,121New business applications in 2022
- #29Ranking of 2022 business applications per capita
- 50,9132022 projected business formations within 4 quarters
- 10%Percent of applications projected to become an employer business
Colorado
- 34.2%More business applications filed in 2022 than in 2019
- 116,613New business applications in 2022
- #6Ranking of 2022 business applications per capita
- 7,6372022 projected business formations within 4 quarters
- 7%Percent of applications projected to become an employer business
Connecticut
- 35.7%More business applications filed in 2022 than in 2019
- 44,637New business applications in 2022
- #31Ranking of 2022 business applications per capita
- 3,0292022 projected business formations within 4 quarters
- 7%Percent of applications projected to become an employer business
Delaware
- 76.1%More business applications filed in 2022 than in 2019
- 45,765New business applications in 2022
- #2Ranking of 2022 business applications per capita
- 2,0042022 projected business formations within 4 quarters
- 4%Percent of applications projected to become an employer business
District of Columbia
- 16%More business applications filed in 2022 than in 2019
- 14,330New business applications in 2022
- #5Ranking of 2022 business applications per capita
- 6192022 projected business formations within 4 quarters
- 4%Percent of applications projected to become an employer business
Florida
- 55.1%More business applications filed in 2022 than in 2019
- 611,723New business applications in 2022
- #3Ranking of 2022 business applications per capita
- 33,0532022 projected business formations within 4 quarters
- 5%Percent of applications projected to become an employer business
Georgia
- 58.6%More business applications filed in 2022 than in 2019
- 274,358New business applications in 2022
- #4Ranking of 2022 business applications per capita
- 13,5872022 projected business formations within 4 quarters
- 5%Percent of applications projected to become an employer business
Hawaii
- 27.9%More business applications filed in 2022 than in 2019
- 18,599New business applications in 2022
- #26Ranking of 2022 business applications per capita
- 9812022 projected business formations within 4 quarters
- 5%Percent of applications projected to become an employer business
Idaho
- 0.2%More business applications filed in 2022 than in 2019
- 29,765New business applications in 2022
- #19Ranking of 2022 business applications per capita
- 3,1352022 projected business formations within 4 quarters
- 11%Percent of applications projected to become an employer business
Illinois
- 43.4%More business applications filed in 2022 than in 2019
- 169,979New business applications in 2022
- #24Ranking of 2022 business applications per capita
- 11,6112022 projected business formations within 4 quarters
- 7%Percent of applications projected to become an employer business
Indiana
- 54.2%More business applications filed in 2022 than in 2019
- 83,518New business applications in 2022
- #32Ranking of 2022 business applications per capita
- 5,7672022 projected business formations within 4 quarters
- 7%Percent of applications projected to become an employer business
Iowa
- 35.1%More business applications filed in 2022 than in 2019
- 29,829New business applications in 2022
- #50Ranking of 2022 business applications per capita
- 2,7502022 projected business formations within 4 quarters
- 9%Percent of applications projected to become an employer business
Kansas
- 37.7%More business applications filed in 2022 than in 2019
- 31,154New business applications in 2022
- #42Ranking of 2022 business applications per capita
- 2,7822022 projected business formations within 4 quarters
- 9%Percent of applications projected to become an employer business
Kentucky
- 41.2%More business applications filed in 2022 than in 2019
- 46,714New business applications in 2022
- #44Ranking of 2022 business applications per capita
- 3,3882022 projected business formations within 4 quarters
- 7%Percent of applications projected to become an employer business
Louisiana
- 48.6%More business applications filed in 2022 than in 2019
- 80,607New business applications in 2022
- #11Ranking of 2022 business applications per capita
- 3,7192022 projected business formations within 4 quarters
- 5%Percent of applications projected to become an employer business
Maine
- 29.8%More business applications filed in 2022 than in 2019
- 12,977New business applications in 2022
- #49Ranking of 2022 business applications per capita
- 1,5902022 projected business formations within 4 quarters
- 12%Percent of applications projected to become an employer business
Maryland
- 31.2%More business applications filed in 2022 than in 2019
- 99,453New business applications in 2022
- #14Ranking of 2022 business applications per capita
- 4,8992022 projected business formations within 4 quarters
- 5%Percent of applications projected to become an employer business
Massachusetts
- 24.5%More business applications filed in 2022 than in 2019
- 71,468New business applications in 2022
- #46Ranking of 2022 business applications per capita
- 7,1882022 projected business formations within 4 quarters
- 10%Percent of applications projected to become an employer business
Michigan
- 1,772.5%More business applications filed in 2022 than in 2019
- 137,276New business applications in 2022
- #23Ranking of 2022 business applications per capita
- 7,8322022 projected business formations within 4 quarters
- 6%Percent of applications projected to become an employer business
Minnesota
- 31.9%More business applications filed in 2022 than in 2019
- 61,014New business applications in 2022
- #41Ranking of 2022 business applications per capita
- 5,0462022 projected business formations within 4 quarters
- 8%Percent of applications projected to become an employer business
Mississippi
- 75.5%More business applications filed in 2022 than in 2019
- 55,264New business applications in 2022
- #9Ranking of 2022 business applications per capita
- 2,6892022 projected business formations within 4 quarters
- 5%Percent of applications projected to become an employer business
Missouri
- 37.8%More business applications filed in 2022 than in 2019
- 81,239New business applications in 2022
- #25Ranking of 2022 business applications per capita
- 5,8932022 projected business formations within 4 quarters
- 7%Percent of applications projected to become an employer business
Montana
- 46.1%More business applications filed in 2022 than in 2019
- 20,661New business applications in 2022
- #10Ranking of 2022 business applications per capita
- 1,8892022 projected business formations within 4 quarters
- 9%Percent of applications projected to become an employer business
Nebraska
- 38%More business applications filed in 2022 than in 2019
- 20,571New business applications in 2022
- #43Ranking of 2022 business applications per capita
- 2,1502022 projected business formations within 4 quarters
- 10%Percent of applications projected to become an employer business
Nevada
- 46%More business applications filed in 2022 than in 2019
- 62,219New business applications in 2022
- #7Ranking of 2022 business applications per capita
- 4,4102022 projected business formations within 4 quarters
- 7%Percent of applications projected to become an employer business
New Hampshire
- 25.8%More business applications filed in 2022 than in 2019
- 13,959New business applications in 2022
- #48Ranking of 2022 business applications per capita
- 1,3892022 projected business formations within 4 quarters
- 10%Percent of applications projected to become an employer business
New Jersey
- 36.6%More business applications filed in 2022 than in 2019
- 154,322New business applications in 2022
- #13Ranking of 2022 business applications per capita
- 9,8142022 projected business formations within 4 quarters
- 6%Percent of applications projected to become an employer business
New Mexico
- 54.8%More business applications filed in 2022 than in 2019
- 27,113New business applications in 2022
- #28Ranking of 2022 business applications per capita
- 1,7802022 projected business formations within 4 quarters
- 7%Percent of applications projected to become an employer business
New York
- 29.9%More business applications filed in 2022 than in 2019
- 299,100New business applications in 2022
- #17Ranking of 2022 business applications per capita
- 23,3332022 projected business formations within 4 quarters
- 8%Percent of applications projected to become an employer business
North Carolina
- 57.6%More business applications filed in 2022 than in 2019
- 164,185New business applications in 2022
- #18Ranking of 2022 business applications per capita
- 12,3092022 projected business formations within 4 quarters
- 7%Percent of applications projected to become an employer business
North Dakota
- 16%More business applications filed in 2022 than in 2019
- 7,933New business applications in 2022
- #45Ranking of 2022 business applications per capita
- 8232022 projected business formations within 4 quarters
- 10%Percent of applications projected to become an employer business
Ohio
- 47.4%More business applications filed in 2022 than in 2019
- 140,699New business applications in 2022
- #33Ranking of 2022 business applications per capita
- 8,1242022 projected business formations within 4 quarters
- 6%Percent of applications projected to become an employer business
Oklahoma
- 34%More business applications filed in 2022 than in 2019
- 55,094New business applications in 2022
- #22Ranking of 2022 business applications per capita
- 3,8552022 projected business formations within 4 quarters
- 7%Percent of applications projected to become an employer business
Oregon
- 26%More business applications filed in 2022 than in 2019
- 49,617New business applications in 2022
- #34Ranking of 2022 business applications per capita
- 5,0052022 projected business formations within 4 quarters
- 10%Percent of applications projected to become an employer business
Pennsylvania
- 34.6%More business applications filed in 2022 than in 2019
- 139,067New business applications in 2022
- #40Ranking of 2022 business applications per capita
- 9,8632022 projected business formations within 4 quarters
- 7%Percent of applications projected to become an employer business
Rhode Island
- 29.6%More business applications filed in 2022 than in 2019
- 10,943New business applications in 2022
- #47Ranking of 2022 business applications per capita
- 1,1502022 projected business formations within 4 quarters
- 11%Percent of applications projected to become an employer business
South Carolina
- 75.3%More business applications filed in 2022 than in 2019
- 91,028New business applications in 2022
- #12Ranking of 2022 business applications per capita
- 5,8182022 projected business formations within 4 quarters
- 6%Percent of applications projected to become an employer business
South Dakota
- 34.6%More business applications filed in 2022 than in 2019
- 10,422New business applications in 2022
- #37Ranking of 2022 business applications per capita
- 1,1102022 projected business formations within 4 quarters
- 11%Percent of applications projected to become an employer business
Tennessee
- 55%More business applications filed in 2022 than in 2019
- 91,551New business applications in 2022
- #27Ranking of 2022 business applications per capita
- 6,6742022 projected business formations within 4 quarters
- 7%Percent of applications projected to become an employer business
Texas
- 52.3%More business applications filed in 2022 than in 2019
- 467,868New business applications in 2022
- #15Ranking of 2022 business applications per capita
- 36,5252022 projected business formations within 4 quarters
- 8%Percent of applications projected to become an employer business
Utah
- 30.5%More business applications filed in 2022 than in 2019
- 65,331New business applications in 2022
- #8Ranking of 2022 business applications per capita
- 5,2432022 projected business formations within 4 quarters
- 8%Percent of applications projected to become an employer business
Vermont
- 34.5%More business applications filed in 2022 than in 2019
- 7,498New business applications in 2022
- #36Ranking of 2022 business applications per capita
- 7012022 projected business formations within 4 quarters
- 9%Percent of applications projected to become an employer business
Virginia
- 40.1%More business applications filed in 2022 than in 2019
- 123,744New business applications in 2022
- #20Ranking of 2022 business applications per capita
- 7,8872022 projected business formations within 4 quarters
- 6%Percent of applications projected to become an employer business
Washington
- 25.2%More business applications filed in 2022 than in 2019
- 88,883New business applications in 2022
- #38Ranking of 2022 business applications per capita
- 9,5212022 projected business formations within 4 quarters
- 11%Percent of applications projected to become an employer business
West Virginia
- 38.6%More business applications filed in 2022 than in 2019
- 13,812New business applications in 2022
- #51Ranking of 2022 business applications per capita
- 1,0502022 projected business formations within 4 quarters
- 8%Percent of applications projected to become an employer business
Wisconsin
- 47.1%More business applications filed in 2022 than in 2019
- 64,606New business applications in 2022
- #39Ranking of 2022 business applications per capita
- 4,7062022 projected business formations within 4 quarters
- 7%Percent of applications projected to become an employer business
Wyoming
- 120.6%More business applications filed in 2022 than in 2019
- 41,940New business applications in 2022
- #1Ranking of 2022 business applications per capita
- 1,8732022 projected business formations within 4 quarters
- 4%Percent of applications projected to become an employer business
Data from the U.S. Census Bureau, Business Formation Statistics. Analysis by U.S. Chamber of Commerce.
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.
Where did this spike in new businesses originate? 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 was not far behind, as entrepreneurs tapped into the need for personal consulting services. This trend held true in 2022 with the 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 entrepreneurial growth. And the data clearly shows Americans are hungry to start their own small businesses.
There is a record high number of applications being filed, and 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 2022, there were 14.9 million business applications filed, so if past formations as a share of applications are comparable today, we’d expect or 1.4 million business, 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
