New business statistics: 2005 to July 2023

The US is seeing a surge in business applications, with 5.07 million business applications being submitted in 2022, according to the US Census Bureau. While this is down 6.18% from the 5.4 million applications in 2021, it is well above the average number of applications received each year since 2005, which sits at roughly 3.14 million.

Quick stats on new businesses

• New businesses in 2023: Through July 2023, 3.12 million business applications have been submitted.⁽¹⁾
• Business Applications for July 2023: There were 469,557 business applications submitted in July 2023.⁽²⁾
• Business Applications for June 2023: There were 467,170 business applications submitted in June 2023.⁽²⁾
• Month-on-month change: Business applications were up slightly, increasing by 0.51% between June and July 2023.⁽²⁾
• New businesses in 2022: In 2022, 5.07 million business applications were submitted.⁽¹⁾
• New businesses in 2021: In 2021, 5.4 million business applications were submitted.⁽¹⁾
• Year-on-year change: Business applications dropped -6.18% between 2021 and 2022.⁽²⁾
• Average number of applications: Each year, an average of 3.14 million business applications are submitted.⁽²⁾

Business applications: 2005-2023

Through July 2023, business applications are up 5.76% compared to the first six months of 2022, with 3.12 million businesses starting so far this year compared to 2.95 million in 2022.

Monthly business applications: 2005-2023

Monthly business applications have been strong since the pandemic, peaking in July 2020 with 552,214. Since May 2020, the monthly average number of business applications sits at 433,514 compared to 232,475 per month (avg. from January 2005-April 2020).

Month-over-month change

Month-over-month business applications were slightly up in July 2023, with 469,557 submissions compared to the 467,170 business applications submitted in June 2023 — an increase of 0.51%.

Which month sees the most applications?

That being said, 2023 does stand a chance to close out the year ahead of 2022 in terms of the number of business applications filed, as submissions typically increase as the year goes on, with July seeing the most applications at an average of 272,751.

Number of business applications: 2005-2022

Overall, business applications were slightly down in 2022, with 5.1 million applications being submitted compared to 5.4 million in 2021. Still, this remains well above the annual average since 2005 of 3.1 million.

How many of these applications turn into businesses?

In addition to the business applications data, the United States Census Bureau also offers formation predictions, basically a forecast of how many business applications will become an employer (wage-paying) business within four quarters.

While business applications are up, the percentage of new business startups that will have payroll tax liabilities within 12 months of submitting their business application is on the decline. Since 2005, the United States Census Bureau predicted an average of 10.2% of applications would become businesses within four quarters of submitting their applications, compared to 7.4% so far through 2023.

Business formation statistics release dates 2023

Four releases remain in 2023, with the next update coming on Monday, September 18, 2023, with information related to business formation in August 2023.

• Methodology

  Finder reviewed business application data available from the United States Census Bureau.