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Entrepreneurial spirit flourishes


As business formation surges

By Kristina Dixon | Across Black America

Recent data indicate a remarkable surge in entrepreneurship and business formation, signaling  a rebound in the post-pandemic economy. 

According to a study by the Center for American Progress, there has been a notable uptick in business applications, particularly those classified as “likely employer” filings, between January 2021 and December 2023. The 5.2 million applications reflect a 34% increase compared to the pre-pandemic years of 2017 to 2019.

“The surge in business applications is a strong signal of economic recovery,” said a representative from the Center for American Progress. “It demonstrates confidence in the market and presents opportunities for job creation, productivity growth, and enhanced competition.”

The trend extends nationwide, with every state and Washington, D.C., experiencing a rise in likely employer applications. The state of Wyoming saw a staggering 93% increase, indicating a broad-based entrepreneurial revival.

Further analysis reveals a corresponding increase in startups—businesses less than a year old—surpassing pre-Great Recession levels for the first time. The surge in business formation transcends the pandemic’s immediate aftermath, with momentum continuing well into 2023. 

“This surge in startup activity marks a significant milestone in the economic recovery,” an economist said. “It not only replenishes lost ground but also fosters a dynamic business landscape conducive to innovation and growth.” 

The reasons behind the surge include changes in work dynamics and lifestyle post-pandemic. Additionally, supportive public policies such as the American Rescue Plan have catalyzed the entrepreneurial spirit. Measures like financial support for families and businesses, coupled with a robust economic recovery, have created an environment ripe for business creation and expansion.

“The American Rescue Plan has been instrumental in providing the necessary impetus for budding entrepreneurs,” noted a policy expert. “By bolstering economic stability and reducing financial risks, it has empowered individuals to pursue their entrepreneurial aspirations.”

Moreover, targeted policies aimed at small-business development have further fueled the surge. Initiatives such as increased capital access programs and support for minority-owned businesses have facilitated a diverse and inclusive entrepreneurial landscape. 

“The Biden administration’s commitment to small-business support is evident,” an analyst remarked. “Through strategic investments and policy frameworks, it continues to nurture a vibrant entrepreneurial ecosystem poised for sustained growth.”