Tracking Small Business Growth
February 12, 2024
We’re in the midst of unprecedented small business growth, as the Small Business Administration announced the creation of over 16 million new small businesses in the last three years. This historic growth signals confidence in the economy among entrepreneurs, which has translated into the creation of over 14 million new jobs and the lowest unemployment rate we’ve seen in five decades. The small business boom is especially notable as we approach the 4th anniversary of the start of the pandemic, which resulted in millions of small businesses scaling back operations or closing their doors entirely to stop the spread of the virus. The pandemic was a deeply challenging chapter for entrepreneurs, but nearly four years on, we’re encouraged to see a historic recovery in small business growth.
“The President’s announcement of a record 16 million new small businesses in the last three years is a signal that the US economy is working for entrepreneurs, and in turn, that business owners have confidence in the economy. AAPI businesses have benefited from a stronger economy, with over 2.91 million AAPI-owned businesses and counting, fueling job creation and economic growth in their communities” said National ACE President & CEO, Chiling Tong.
As the growth in small business continues, we’re also seeing the formation of small business hot spots across the Midwest and the Mountain West. Notably, states including Colorado, North Dakota, and Iowa are experiencing the greatest surges in small business creation. As small business growth continues to be analyzed, one thing is clear, and that is that growth is being driven by AAPI, Black, Hispanic, women, and LGBTQ+-owned businesses. AAPI businesses alone grew by 13% from January to July 2023, and Asian American women grew their revenues by 7.5% between 2019 and 2023.
Small business growth is driven by a range of factors, including confidence among entrepreneurs, and by new opportunities created through landmark legislation such as the CHIPS and Science Act, the Inflation Reduction Act, and the Bipartisan Infrastructure Law. Each of these bills creates billions of dollars in contracting opportunities for small businesses and ensures that underserved businesses have access to new opportunities.
National ACE is excited to continue supporting growth among AAPI businesses through our Capital Readiness Grant from the MBDA, which is supporting the development of much-needed technical assistance programming for AAPI businesses.
