By David Lawder
Washington, D.C. - In a groundbreaking report released by the U.S. Treasury, it has been revealed that small business startup applications in the United States are experiencing a surge in 2024. This positive trend comes as sentiment in the sector improves following a tumultuous post-pandemic period, fueled by a decrease in inflation.
The analysis shows that the U.S. is currently witnessing an average of 430,000 new business applications per month, a staggering 50% increase compared to 2019, the last pre-COVID year. Of particular note is the rise in applications for businesses expected to hire employees, which have increased by 30% compared to 2019, reaching 140,000 per month.
Furthermore, small businesses have been identified as the primary drivers of job creation in the U.S., responsible for 70% of net new American jobs since 2019, up from 64% in the previous business cycle.
Vice President Kamala Harris is set to unveil a bold proposal for a 10-fold increase in a tax break for startups, with a new deduction limit of up to $50,000 for startup costs. This initiative aims to support small businesses and encourage entrepreneurship by addressing the financial barriers to starting a business.
Under the leadership of President Biden and Vice President Harris, historic investments have been made in the success and growth of small businesses. These efforts have resulted in a record-breaking 19 million new small business applications since the administration took office, with a focus on supporting overlooked and underserved communities.
The report also highlights the positive impact of recent policy measures on small business sentiment, with indicators such as the Small Business Optimism Index and the U.S. Chamber of Commerce Small Business Index showing significant improvement. Additionally, easing lending standards are providing much-needed support to small businesses, contributing to the sector's rising optimism.
Overall, the surge in small business startup applications signals a promising economic recovery and underscores the vital role of small businesses in driving job creation and economic growth in the United States.
