How Many New Businesses Started in 2021? – Which ones

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Written By pbcoreresources

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5,388,282 new businesses started in 2021 in the United States. This broke the previous record of new businesses in one year, 4,381,415, which was established in 2020.

Although the pandemic affected business slowly for several months, it seems to have been good for a long time for starting a new business.

The number of new businesses in 2021 in the United States increased by 23% from 2020. In 2020, the economic growth rate increased significantly. From 2019 to 2020, the number of new businesses in the US grew by 24.7%.

Business Trends in the US 2019-2021

A year New Businesses Created Year-on-Year Growth
2019 3,514,509 0.44%
2020 4,381,415 24.67%
2021 5,388,282 22.98%

This was unusual, as the number of new businesses created in America from 2018-2019 did not grow at all (0.4%).

Which Region Created the Most New Businesses in 2021?

The South started new businesses in 2021. 2,529,309 new businesses were started in the South in 2021 – nearly 47% of all new businesses created in the United States overall.

In comparison, the Northeast created new businesses in 2021, at 804,888.

Business Development in the US 2021

Moon US North east Midwest In the south In the west
January 492,133 77,910 85,503 224,859 103,861
February 423,095 64,383 72,007 196,196 90,509
March 440,165 65,051 74,710 205,161 95,243
April 487,939 69,074 87,143 232,216 99,506
Mother 500,219 69,899 85,427 243,617 101,276
June 448,533 62,798 74,535 219,267 91,933
July 454,460 66,518 74,598 216,492 96,852
August 427,842 65,834 70,027 199,194 92,787
September 431,381 65,462 70,193 200,538 95,188
October 432,101 66,441 70,103 200,743 94,814
November 432,034 66,062 69,909 198,939 97,124
December 418,380 65,456 68,556 192,087 92,281
Everything 5,388,282 804,888 902,711 2,529,309 1,151,374

Which Month Are New Businesses Created In 2021?

The most recent deals were made in May 2021. More than half a million new businesses started in May 2021.

This did not break the record for a month. In July 2020, 552,748 new businesses were created, setting a one-month record for new businesses in the US.

New Business Formation FAQ

  1. How much does it cost to start a business?

    It costs about $3,000 to start a small business, while a business with five employees needs about $185,000 to start. Startup fees can be as low as $500 for one-person home businesses, such as blogging.

    But for businesses that need things like real estate, payroll processing, compliance, and payroll, the startup costs can be staggering.

  2. How many small businesses are there in the United States?

    There are 32.5 million small businesses in the United States. 56% of these businesses have fewer than one or four employees. Additionally, 18% of all US workers work for a small business with fewer than 20 employees.

  3. How many people are employed by small businesses in the United States?

    61.2 million people are employed by small businesses in the United States. Politicians pay lip service to it all the time, but it’s true that small businesses are the backbone of America’s economy.

  4. How do small businesses thrive?

    The success rate of small businesses is 80% in the first year, down to 25% by the 15th year.

    The success rate of small businesses depends on the number of years the business has been in operation. On average, small businesses have a 55% return on investment in their first five years. Success rates, however, decline as young businesses age. It is estimated that 25% of small businesses survive after 15 years.

    Although the percentage of small businesses is not as good as that of large businesses, small businesses continue to employ 46.8% of the US workforce, generating 45% of the nation’s economy.

  5. Are small businesses important to the US economy?

    Yes, small businesses are vital to the US economy. About 45% of US GDP is linked to small businesses and about 60 million Americans are employed by small businesses.

    With nearly half of America’s workforce relying on small businesses for income, and the entire nation relying on them for essential goods and services, it’s clear that small businesses are vital to the US economy.


  1. US Census Bureau. “Business Development Statistics.” Accessed March 1, 2022.

  2. Zippia. “Small Business Statistics.” Accessed March 1, 2022.