New business creation stays above 5 million a year in the US

In short: More people are starting companies than many realize, with over 5 million new business filings a year in the United States and tens of millions globally.

What's going on

New company creation has been running at very high levels since 2020. In the United States, official counts show about 5.4 million business applications in 2021, then 5,479,144 in 2023 and 5,199,984 in 2024. Early counts for 2025 also point to another year above 5 million, and some analyses put the 2025 total closer to 5.9 million.

This matters because it suggests the phrase “hundreds of thousands of people are creating companies each year” is too small for the current reality. In the US alone, the numbers are in the millions each year. Worldwide, estimates vary based on how you define a “new business,” but even conservative figures point to tens of millions of new firms a year.

Economists also link this to a shift from the years before 2020, when new business creation in the US had slowed for a long time. Since mid 2020, filings rose fast and then stayed high. Some researchers also point to growth in new company registrations globally over the last two decades.

What to watch

A key question is how many of these new filings turn into employer businesses, meaning companies that hire other people. Another is whether tools like AI (software that can write text, make images, or help with tasks, like a fast assistant) make it easier for small teams to start and run companies with less money.

Source: NYTimes