The Biden administration announced that U.S. small business applications have exceeded 17 million since President Joe Biden took office. This significant milestone marks what officials are calling a “historic small business boom.”
Historic Small Business Boom
The U.S. Small Business Administration (SBA) head, Isabel Casillas Guzman, referred to this surge as a historic moment for small businesses. “This is a historic small business boom,” Guzman said in a statement, emphasizing the robust entrepreneurial activity across the country.
The federal government reported an average of 440,000 new business applications per month during the first three years of the Biden administration. This consistent growth highlights the resilience and innovative spirit of American entrepreneurs despite economic uncertainties.
Support for Minority-Owned Businesses
In March, Vice President Kamala Harris announced a new goal to increase federal contracts for minority-owned businesses by 50%. Speaking at an event in North Carolina focused on small business growth, Harris emphasized the administration’s commitment to supporting diverse entrepreneurs. “This goal will ensure that minority-owned businesses have more opportunities to thrive and contribute to our economy,” she stated.
The Census Bureau’s data also reflects positive trends for minority-owned businesses. Black-owned businesses, for instance, saw a 13% increase between 2017 and 2020, and their revenues surged by 43% between 2017 and 2021. These figures underscore the importance of targeted support and initiatives to foster inclusive economic growth.
Economic Indicators and Challenges
While the surge in small business applications is a positive development, it occurs against a backdrop of rising producer prices. According to a report from the Bureau of Labor Statistics, U.S. producer prices increased for the 12-month period ending in March, marking the largest year-over-year hike since April of the previous year. This increase in costs presents challenges for new and existing small businesses, which must navigate higher expenses while striving to grow.
The administration has also highlighted record job creation and efforts to manage inflation as key achievements. Despite these economic pressures, the entrepreneurial landscape remains vibrant, with Americans across various industries launching new ventures at an unprecedented rate.
Record-Breaking Business Filings
According to U.S. government data, Americans filed a record 5.5 million new business applications in the past year alone, bringing the total number under the current administration to over 17 million. This record-breaking figure reflects the administration’s efforts to foster a supportive environment for small businesses and entrepreneurs.
The surge in small business applications is not just a numerical achievement; it represents the dynamism and adaptability of the American workforce. Entrepreneurs are seizing opportunities to innovate, address market needs, and create jobs, contributing to the broader economic recovery.
Looking Ahead
The historic boom in small business applications under the Biden administration signals a promising future for entrepreneurship in the United States. As the administration continues to implement policies aimed at supporting small businesses, particularly those owned by minorities, the entrepreneurial ecosystem is expected to grow even more robust.
However, it is crucial for policymakers to address the challenges posed by rising costs and economic uncertainties. Ensuring that small businesses have access to necessary resources, including funding, mentorship, and market opportunities, will be vital for sustaining this growth.
