Small business boom reported in US

Small business boom reported across the United States

5 reported

A single-source report from marginalrevolution.com describes a surge in small business creation across the United States, citing Census Bureau data and academic research. The article states that Americans filed 5.7 million applications to start new businesses last year, the highest number in two decades of government tracking, and that applications continued to climb through the first half of this year. The report attributes the boom to factors including pandemic-era mass layoffs and remote work, and more recently to the rise of artificial intelligence. A study from economists at the University of British Columbia and the Stockholm School of Economics found that generative A.I. is spurring entrepreneurial activity by enabling new ventures and lowering startup costs. A report from Gusto, a payroll service, indicated that nearly 60 percent of founders on its platform who started businesses last year used A.I., and half said the technology made the process cheaper and faster. The article references a New York Times piece by Sydney Ember as its source.

What’s reported

Americans filed 5.7 million applications to start new businesses last year, the most in two decades of Census Bureau tracking.

New business applications continued to climb through the first half of this year.

A study from the University of British Columbia and the Stockholm School of Economics found generative A.I. is spurring entrepreneurial activity in the U.S.

Jan Bena, an associate professor at the University of British Columbia and study co-author, stated that A.I. tools can do many things well, explaining the high level of business entry.

A Gusto report found nearly 60 percent of founders on its platform who started businesses last year used A.I., and half said it made starting cheaper and faster.