Map: New Business Applications Surge Across the Country
A record-breaking 5.5 million new business applications were filed in 2023. We’re tracking the entrepreneurship surge in every state across the country.
Director, Communications and Strategy, U.S. Chamber of Commerce
Published
February 02, 2024
Share
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
Empower Your Small Business
Join the U.S. Chamber of Commerce and gain access to exclusive resources, expert insights, and a powerful network dedicated to helping your business thrive. Together, we’ll tackle challenges, drive growth, and amplify your voice in Washington and beyond.
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.
Apply for the CO—100
Applications are open now for the CO—100, a premier awards program honoring top small businesses across the country. Honorees will receive exclusive opportunities, brand exposure, and networking.
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.
Stephanie Ferguson Melhorn is the Senior Director of Workforce & International Labor Policy. Her work on the labor shortage has been cited in the Wall Street Journal, Washington Post, and Associated Press.