With just two months left in office, President Joe Biden is celebrating a remarkable achievement: his administration has seen a record-breaking 20 million new small business applications. The milestone, shared with Yahoo Finance by a White House official on Thursday, underscores a key part of Biden’s economic legacy as he looks to leave office with his mark on the nation’s entrepreneurial landscape.
Small Business Boom Under Biden
“Under our administration, we’ve had the three strongest years for new business applications on record—and we’re on track for a fourth,” Biden said in a statement. “That’s the best single presidential term for new business applications in U.S. history.”
This surge in business creation is being hailed as the largest since the Census Bureau began tracking small business applications in 2004. The influx of new ventures is a bright spot in the overall economic picture, especially as Biden seeks to highlight his achievements amid a challenging political environment.
The milestone comes on the heels of a tough election for Democrats, where inflation and other economic pressures dominated voters’ concerns. While small business growth was one of the positive economic indicators Democrats touted, it has sometimes been overshadowed by inflation worries and other issues. Yet, the White House is emphasizing the broader impact of the business boom, describing it as “a small business boom across the country.”
Diverse Entrepreneurs Lead the Charge
The growth in new businesses isn’t just a numbers game—it’s also about diversity. Under Biden’s administration, business ownership has surged among historically underrepresented groups. Black families have seen business ownership double, while Hispanic families have reached a 30-year high in entrepreneurial activity. Women business owners have also seen significant gains, a trend the administration proudly points to as a sign of more inclusive economic opportunity.
Vice President Kamala Harris, a staunch advocate for small businesses, has championed various initiatives to support entrepreneurs. One of her latest proposals includes a $50,000 tax credit for small businesses, aiming to fuel even greater growth in the coming years. Harris is also setting her sights on a goal of 25 million new small business applications in the next term, should Biden’s successor continue these efforts.
Challenges Still Linger
While the surge in new business applications is a positive development, other small business indicators present a more mixed picture. The NFIB Small Business Optimism Index, for example, rose by 2.2 points in October, reaching a two-year high. However, it also marked the 34th consecutive month of being below the index’s 50-year average, signaling that many small businesses still face significant challenges, from inflation to supply chain issues.
NFIB Chief Economist Bill Dunkelberg noted that small business owners may feel a sense of relief now that the election season is over, but ongoing economic adversity continues to weigh heavily on their prospects.
Government Support Fuels Growth
The White House attributes much of the small business growth to strategic government investments. Federal programs have created new opportunities for lending, tax relief, and other forms of support for entrepreneurs, helping them navigate the post-pandemic economy.
New business applications can range from freelancers registering for tax benefits to full-fledged startups employing staff and offering services. Regardless of the type, each new application represents a step toward economic recovery and a vibrant entrepreneurial ecosystem.
A Legacy of Entrepreneurship
As Biden prepares to hand over the reins to President-elect Donald Trump, the record-breaking number of small business applications stands out as a testament to the administration’s focus on creating opportunities for economic growth. While challenges remain, the 20 million figure represents a historic moment for entrepreneurship in the United States.
