An analysis published by the U.S. Department of the Treasury found that entrepreneurship has surged during the Biden-Harris Administration and small businesses are poised for future growth.
Among the key findings, the report said small businesses have created over 70 percent of net new jobs since 2019, up from 64 percent of net new jobs in the previous business cycle.
Further, more than 70 percent of small business leaders expect revenues to grow over the next year, the highest rate since the pandemic.
In addition, entrepreneurship continues to surge as the U.S. is averaging 430,000 new business applications per month in 2024, 50 percent more than in 2019. Also, the subset of applications for businesses most likely to hire employees has also risen to 140,000 per month, 30 percent more than in 2019.
It also revealed that entrepreneurs are more diverse as 43 percent of self-employed Americans are female, more than ever before. Black, Asian, and Hispanic shares of self-employed Americans are also near all-time highs.
“President Biden and I know that small businesses are the backbone of our communities,” Vice President Kamala Harris said. “Thanks to our Administration’s historic investments in the success and growth of small businesses, there have been a record breaking 19 million new small business applications since President Biden and I took office — including in overlooked and underserved communities. As I’ve traveled the country, I’ve had the privilege to meet so many of the inspiring entrepreneurs and workers who power these businesses. I will never stop fighting to ensure they have the resources, support, and opportunity to not only survive, but thrive.”
The Treasury’s Emergency Capital Investment Program (ECIP) is facilitating an increase in lending to small businesses. In 2022, more than $8.5 billion was allocated for these financial institutions, and in just 18 months, ECIP participants have originated a total of over $58 billion in loans.
Also, in 2022, Harris announced the creation of the Economic Opportunity Coalition, a public-private partnership with some of America’s leading companies as members and with bipartisan support. The coalition set a goal of member companies depositing $3 billion into community lenders.
Treasury also created the Office of Capital Access to focus on getting small businesses the money they need to invest. Through this office’s State Small Business Credit Initiative (SSBCI), billions are set aside for states, territories, and Tribal governments, including $3 billion going towards equity and venture funding.
Further, the implementation of the Inflation Reduction Act, CHIPS and Science Act, and the Bipartisan Infrastructure Law are channeling public capital and encouraging more private investment in economically disadvantaged communities. In addition, the SBA is guaranteeing more small-dollar 7(a) loans to help the smallest businesses, while the Consumer Financial Protection Bureau has finalized a new rule to make small business lending more transparent.