U.S. Business Applications Slowed in 2024
The entrepreneurial boom that defined America’s post-pandemic economy showed signs of cooling in 2024, with new business applications declining 4.76% compared to 2023’s historic highs.
The U.S. Census Bureau reports that 5.2 million new business applications were filed in 2024, down from the record-breaking 5.46 million applications in 2023.
Wyoming is named the business capital of the U.S. with more business applications per capita than any other state, that’s one business created for every 10 citizens, double second-placed Delaware.
Here’s a look at the key statistics:
Top five states for business applications per capita: #1 Wyoming, #2 Delaware, #3 Florida, #4 Montana & #5 Colorado.
Total U.S. business applications for 2024 fell 4.76% from 2023 (5,461,471 vs. 5,201,647).
California and New York saw a decrease in new businesses with 7.51% and 6.63% fewer applications filed respectively.
The biggest increases in 2024 were seen in Montana and Washington with 13.40% and 12.38% rise in new business applications respectively.
New Business Applications By State
Wyoming: The Business Registration Capital of America
Wyoming stands as the nation’s leader in new business applications per capita, with an extraordinary 10 applications per 100 people.
That’s nearly twice the rate of second-place Delaware (5.49) and significantly higher than other states.
Wyoming saw 59,356 new business applications in 2024, slightly increasing from 2023.
Wyoming’s outsized number of applications relative to its population of approximately 580,000 residents points to Wyoming’s distinctive role in American business formation.
The state’s business-friendly tax structure, minimal regulatory requirements, and strong privacy laws have made it a preferred destination for business registration, especially for non-U.S. residents and out-of-state entrepreneurs.
U.S. Business Applications Cool After Post-Pandemic Surge
This slight cooling follows an unprecedented period of entrepreneurial activity that began during the pandemic when millions of Americans turned economic challenges into opportunities.
While the current numbers represent a moderate decrease from 2023’s peak, they remain significantly elevated compared to pre-pandemic levels, suggesting that the entrepreneurial spirit continues to thrive across the nation.
The data indicates that Americans continue to see business ownership as a viable path forward, even as the economy navigates post-pandemic adjustments.
Biggest Movers Show Regional Patterns
Business applications in 2024 revealed distinct regional patterns, with the Northwest showing remarkable growth while the Southeast experienced significant declines.
Montana leads all states with a 13.4% increase, adding over 3,000 new applications to reach 26,666. Its Northwestern neighbors followed suit, with Washington posting a 12.38% gain and Oregon growing by 6.61%.
On the opposite end of the spectrum, Louisiana saw the steepest decline at 15%, with applications falling by more than 12,000 to 68,346. The Southeast’s cooling trend is further evidenced by Georgia’s 12.69% decrease, representing a significant drop of over 35,000 applications, and Mississippi’s 11.89% decline.
These contrasting trends suggest a possible shift in entrepreneurial activity from the Southeast to the Northwest.
Entrepreneurs Find New Opportunities
While business applications have moderated from their record highs, the current environment presents unique opportunities for aspiring entrepreneurs.
The continued democratization of business tools means entrepreneurs can launch with lower overhead than ever before. AI tools and sophisticated software are now available at a fraction of their historical costs.
The ongoing evolution of remote work and recent tech industry adjustments have created a deep pool of skilled professionals starting new ventures. This also means access to experienced talent that might have been locked into traditional corporate roles in previous years.
Some of America’s most successful companies were started during periods of economic adjustment. These times often provide the perfect combination of available resources, market needs, and reduced competition that can help new businesses thrive.
Sources
https://www.census.gov/econ/currentdata
https://www.census.gov/popclock
