US small businesses create more than 70 percent of net new jobs in 5 years
(MENAFN) According to a report released Tuesday by the Treasury Department, small businesses in the US have been the driving force behind job creation, accounting for over 70 percent of net new jobs since 2019. This highlights the pivotal role that small enterprises play in the economy, reinforcing their status as essential components of local communities. Vice President Kamala Harris emphasized this sentiment, noting that the Biden administration's significant investments in supporting small businesses have led to unprecedented levels of new business applications, particularly in previously underserved areas.
The report reveals that since President Biden and Vice President Harris took office, there have been a record-breaking 19 million new small business applications. This surge in new ventures reflects a vibrant and expanding entrepreneurial landscape. Additionally, the pace of new business formations has been notably strong, with the US averaging 430,000 new business applications per month in 2024. This figure represents a 50 percent increase compared to 2019, showcasing a significant rise in entrepreneurial activity.
Optimism among small business owners has been on the rise as inflation pressures ease, according to the report. Several measures of business confidence have shown substantial improvements in recent months, indicating a positive shift in sentiment. Furthermore, more than 70 percent of small business leaders anticipate revenue growth over the coming year, marking the highest level of optimism since the onset of the coronavirus pandemic.
The report also highlights an increasing diversity among entrepreneurs. Women now represent 43 percent of self-employed Americans, the highest percentage ever recorded. Additionally, the shares of Black, Asian, and Hispanic self-employed individuals are nearing all-time highs. This growing diversity among small business owners reflects broader societal changes and contributes to a more inclusive entrepreneurial landscape.
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