More than 18 Million People Have Filed New Business Applications, and so can you

Over the past four years, the entrepreneurial spirit in the United States has reached unprecedented heights. According to the Small Business Administration there have been 18.1 million new business applications with an average of 443,000 filed each month – a rate over 90% faster than pre-pandemic averages. This surge in small business creation highlights a fundamental shift in the American workforce, driven by economic necessity, new opportunities, and the flexibility provided by remote work. Behind each application is a story of determination, vision, and often a leap of faith—qualities that capture what it truly takes to start and run a small business today.

A Historic Boom in Entrepreneurship

The recent wave of small business applications is fueled by multiple factors. The pandemic was a catalyst, pushing people to consider alternative income sources as traditional employment was disrupted. For some, job loss or instability became an impetus to pursue long-held dreams of business ownership. For others, the rise of remote work offered a unique chance to combine business with a balanced lifestyle.

Prospective entrepreneurs have found resources through the Small Business Administration. The introduction of Paycheck Protection Program (PPP) loans, expanded grants, and tax benefits has made starting a business financially feasible.

Essential Steps to Starting a Small Business

For anyone inspired by this trend, starting a small business requires strategic planning, resilience, and adaptability. Here’s what it takes to get started:

1. Define the Business Idea: Every business begins with an idea, but transforming an idea into a business requires clarity and focus. Start by identifying what value your business will provide, who your target customers are, and how your offerings stand out from competitors. Conducting market research is crucial here; it helps validate your idea, understand customer needs, and size up the competition.
2. Create a Business Plan: A well-structured business plan serves as a blueprint for growth. This document should outline your business goals, financial projections, marketing strategy, and operational plan. Beyond acting as a roadmap, a solid business plan is often essential for securing loans or investor funding.
3. Secure Funding: Many new businesses fail due to a lack of funding. There are multiple financing options available, including personal savings, small business loans, SBA grants, crowdfunding, and venture capital. Assess your funding needs based on your business model and plan accordingly.
4. Register the Business and Obtain Permits: Every business must be legally registered with the appropriate authorities. Depending on the type of business and location, specific permits, licenses, and registrations may be required. Consulting a legal or business advisor can help ensure compliance with local, state, and federal regulations.
5. Develop a Marketing Strategy: In today’s digital age, visibility is key. Creating an online presence, whether through a website, social media, or online marketplaces, can dramatically improve your business’s reach. Networking within local communities and using digital marketing strategies, such as SEO, content marketing, and email marketing, can also help attract a loyal customer base.
6. Prepare for the Unexpected: Running a small business requires flexibility and the ability to adapt to unforeseen challenges. This resilience is what often separates long-lasting businesses from those that quickly fold. Entrepreneurs should be prepared to pivot when necessary and keep an eye on cash flow to maintain business stability.

The recent increase in small business applications represents a new era of American entrepreneurship. Starting a business is challenging, but with the right tools, mindset, and support, small business owners are building a resilient and diverse economic future. Whether you’re an aspiring restaurateur, tech innovator, or local service provider, this could be your time to join the historic wave of new businesses shaping communities across the nation.