Quick Answer 🔍How many new businesses started in 2021 and 2022?
There were 5,388,282 new business applications in 2021.
Curious about how many new businesses started in 2021 and 2022?
This article is for you.
Businesses around the globe faced one of the biggest crises to record due to the COVID-19 pandemic.
This unexpected pandemic affects enterprises, global supply chains, and the economy.
Other businesses closed operations and some laid-off labor force, but different businesses looked for ways to overcome the challenges brought by the pandemic.
A year after the lockdown, the number of businesses started to grow.
According to the new business statistics released by World Bank, there is an increasing number of people who started their new businesses in the United States.
The US got about 91.6 ratings out of 100 for ease of starting a new business.
How Many New Businesses Started in 2021 and 2022?
How many new businesses started in 2021 and 2022?
The number of new business applications rose more than 100% from around 2.58 million in 2011 to nearly 5.4 million in 2021.
Based on recent data, there were approximately 333.34 million businesses around the world in 2021.
It increased by over 5 million businesses worldwide compared to the previous year.
According to Business Formation Statistics, business applications in the United States continuously rise over the years.
From roughly 2,580,000 new business applications in 2011 to 5,388,282 in 2021. This shows that it doubles the number of new businesses after a decade.
The first two quarters of 2022 also show a high number of new businesses, recording about 2,518,813 new business applications.
Total Number of New Businesses Per Quarter
Analysts revealed that the continuous increase in the number of new businesses is caused by the loss of numerous people’s jobs during the height of the pandemic.
These people started their businesses to acquire their lost income.
Here is a list of the total number of new businesses per quarter starting Q1 2020 to Q2 2022:
- About 841,180 new business applications were recorded in Q1 2020
- About 906,876 new business applications were recorded in Q2 2020
- About 1,475,976 new business applications were recorded in Q3 2020
- About 1,157,383 new business applications were recorded in Q4 2020
- About 1,357,284 new business applications were recorded in Q1 2021
- About 1,437,636 new business applications were recorded in Q2 2021
- About 1,308,890 new business applications were recorded in Q3 2021
- About 1,281,811 new business applications were recorded in Q4 2021
- About 1,264,124 new business applications were recorded in Q1 2022
- About 1,254,689 new business applications were recorded in Q2 2022
Year-Over-Year Growth of New Businesses in the United States
Every business worldwide has felt the effects of the COVID-19 pandemic.
Approximately one-fourth of businesses experienced decreasing sales by 50%, and on average, businesses decreased sales by 27% from October 2020 to January 2021.
The pandemic also slows down the formation of new businesses.
In 2021, the number of new businesses in the United States increased by nearly 23% from 2020.
Here is a list of the year-over-year growth of new businesses in the US:
- In 2019, there are approximately 3,514,509 new businesses formed with 0.44% year-over-year growth in the US
- In 2020, there are approximately 4,381,415 new businesses formed with 24.67% year-over-year growth in the US
- In 2021, there are approximately 5,388,282 new businesses formed with 22.98% year-over-year growth in the US
What Region in the US had the Most Number of New Businesses in 2021?
Out of all the regions in the US, the South region had the most number of new businesses started in 2021.
It recorded 2,529,309 new businesses or about 47% of the total new businesses in the US.
It is followed by the Midwest region with 902,711 new businesses, and the Northeast region with 804,888 new businesses.
What are the New Businesses Mostly Started in 2021
Here are some of the new businesses that started in 2021 and their projected growth in 2022.
- E-commerce or non-store retailing – reached a 77% growth from 2019 and estimated growth of over 16% year-over-year in 2022
- Professional services like legal, consulting, accounting, research, design, and technical services – projected to increase at an almost 11% compound annual growth rate in 2022
- Administrative and support – has an estimated increase of more than 3% in growth rate in 2022
- Supply chain and logistics – increased funding by around 58% in 2021 and will continuously increase in 2022
Average Rate of New Businesses to Survive
Despite the growing number of businesses around the world, it is true that not all newly started businesses will survive over the years.
Based on the US Small Business Administration research, 80% of newly started businesses survive the first year, and 70% survive the second year.
While 50% survive the fifth year, 30% survive the tenth year, and only 25% survive the fifteenth year.
In 2021, around 840,000 businesses in the US were less than 1 year old compared to the 804,620 in 2020.
Which Month in 2021 Had the Most New Business Formations?
The month of May had the most number of newly formed businesses in the US in 2021 with more than 500,000, followed by January with over 490,000.
However, July 2020 still holds the single-month record for newly formed businesses in the US with 552,748.
How Much Will it Cost to Start a New Business?
Start-up businesses cost about $500 which can be done by a single person at home. To start new micro businesses, prepare approximately $3,000.
To start a business with 5 employees requires around $185,000.
The number of new businesses globally continuously grows every year since many people lose their jobs due to the pandemic.
It was recorded in 2021 that it doubles the number of new businesses in the US compared to the record in 2011.
According to the recent data, a total of 5,388,282 newly started businesses with 22.98% YOY growth in 2021, and 2,518,813 new businesses in the first two quarters of 2022 were recorded.
Most of the newly formed businesses are e-commerce, professional services, administrative and support, and supply chain and logistics.
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