America’s Best Cities for Entrepreneurs

The United States is experiencing a remarkable surge in new business applications, with over 20 million filed since the start of the Biden-Harris administration. This marks the highest number recorded during a single presidential term and reflects a growing entrepreneurial spirit across the country.

Where Americans Are Starting Businesses

Entrepreneurial activity is thriving in certain parts of the U.S., with the South and West leading the way. These regions attract entrepreneurs with population growth, affordable living, and business-friendly tax policies. Key cities and areas driving this growth include:

• Miami, Florida: Miami-Dade County alone saw 127,895 new business applications in 2023, highlighting its role as a major entrepreneurial hub in Florida, which ranked third in applications per capita with 667,031 filings statewide.
• Austin, Texas: Known for its vibrant startup culture, Austin exemplifies Texas's broader pro-business reputation, attracting entrepreneurs and companies relocating from other states.

Despite this growth, some areas face challenges. For example, Georgia experienced a 9.9% decline in new business applications between December 2022 and December 2023, signaling uneven growth across the country.

Record-Breaking Numbers

In 2023 alone, 5.5 million new business applications were submitted, marking the third consecutive year of record-breaking growth. Small businesses are now responsible for 70% of net new jobs in the U.S., up from 64% in previous years.

A More Diverse Entrepreneurial Segment

The boom extends to diverse demographics, with increasing numbers of Black, Latino, and women entrepreneurs launching businesses. This diversification strengthens the economic fabric of communities nationwide.

Supporting New Businesses

Government initiatives are playing a role in supporting this entrepreneurial wave. Proposals like increasing the startup tax deduction from $5,000 to $50,000 aim to reduce financial barriers for new ventures.

Challenges and Regional Variations

Despite the overall growth, challenges persist. Some states and regions are not keeping pace, highlighting the complexity of factors influencing new business formation.

Final Thoughts

The surge in business applications reflects a robust and inclusive entrepreneurial spirit, particularly in the South and West. With continued support through policies and infrastructure, these new businesses will play a pivotal role in driving innovation, creating jobs, and boosting the economy.