New Business Surge: Unveiling the Business Application Boom through an Analysis of Administrative Data | CEA

New businesses play a key role in fostering job creation and productivity growth in the U.S. economy. Business applications—a leading indicator of business formation that is reported through the Census Bureau’s Business Formation Statistics—have risen substantially during the past three years relative to any previous period since 2004, when the series began. In particular, 15.5 million new business applications have been recorded since the start of the Biden-Harris Administration, this represents an approximately 85 percent increase in the average flow of monthly applications relative to the period between 2004 and January 2021. Some have questioned whether this increase in applications re

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