New business applications: A sign of economic recovery and growth
The U.S. Census Bureau provides valuable insights into the state of new business applications, which are indicators of individuals seeking tax IDs for potential business ventures. This data, available since July 2004, helps forecast future business formations.
In a surprising turn of events, the COVID-19 pandemic sparked a significant surge in business applications. This development is incredibly promising for entrepreneurship, as it plays a crucial role in driving economic recovery and growth.
The latest figures reveal that total business applications reached unprecedented levels. In 2021 alone, there were a staggering 5.4 million applications, reflecting a strong desire for new business ventures. Additionally, high-propensity business applications, which are more likely to involve payrolls, also hit a record high of 1.8 million.
These remarkable numbers point towards a potential wave of entrepreneurial activity, highlighting the resilience and determination of individuals to rebuild and thrive amidst challenging circumstances.
