The number of new businesses being launched in the United States has risen sharply in recent years, with experts pointing to artificial intelligence as a major driver of the trend. AI tools are making everything from building websites to handling accounting easier, allowing small businesses to get up and running at lower cost.
Entrepreneurship in the US is experiencing one of its strongest periods in years. According to data from the US Census Bureau, an average of 466,000 people a month have applied to start a new business since the beginning of 2024. In June, that figure rose to 531,000, nearly twice the monthly average recorded in 2019.
Experts say the wave of new business creation that gained momentum during the Covid-19 pandemic has entered a new phase with the widespread adoption of AI technologies.
Full-time entrepreneurship reaches a record high
The number of Americans working full-time for themselves reached 16.8 million in 2025, the highest level this century.
The trend began during the pandemic, when millions of people who lost their jobs turned to starting their own businesses. Government stimulus programs and the rapid growth of e-commerce also played an important role. Although those incentives ended after the pandemic, applications for new businesses remained elevated and began rising sharply again from 2024.
Most of these applications are not coming from AI startups in Silicon Valley. Instead, they are concentrated in traditional sectors such as professional services, retail, healthcare and social assistance.
As finding jobs becomes harder, entrepreneurship gains ground
Economists say changes in the labor market are another factor behind the rise in entrepreneurship.
With hiring and layoffs remaining relatively subdued between 2021 and 2025, younger workers in particular are believed to have increasingly turned to starting their own businesses.
According to Gallup, the share of people aged 15 to 34 who believed it was a “good time to find a job” fell from 75% in 2022 to 43% last year.
Workers who moved away from major cities during the pandemic and were reluctant to return to offices are also thought to have contributed to the shift toward entrepreneurship.
AI is lowering the barriers to starting a business
Experts say AI is the most important factor behind the recent surge in entrepreneurship.
With the help of chatbots, even people with limited technical knowledge can build a website within a short time, learn about local regulations and manage their businesses digitally.
According to research by Gusto, a payroll and HR platform, the share of entrepreneurs using AI when starting a business rose from 30% to 60% between 2023 and 2025.
Analysis by JPMorgan Chase also shows that newly established small businesses are adopting AI earlier than their more established counterparts.
E-commerce gives small businesses a boost
Changing consumer habits are another factor behind the rise in entrepreneurship.
As the aging US population drives greater demand for elderly care services, e-commerce platforms are creating new opportunities for small businesses selling niche products.
According to Shopify, more than half of all sales made through its platform now come from niche categories outside the 100 most popular product categories. Sales of trading cards, personalized products and other goods targeting small markets have become important sources of revenue for entrepreneurs.
Is the era of the “solopreneur” beginning?
Economists at payments company Stripe argue that the rise of the “solopreneur” is already underway, as AI takes over many tasks that previously required companies to hire employees.
According to the US Census Bureau, the share of new business applications considered likely to employ at least one worker fell from 38% of all applications in 2019 to 30% last year.
Kelly Loeffler, head of the US Small Business Administration, however, predicts that employment will rise again as AI-powered businesses expand.
Small businesses could be AI’s biggest winners
Economists believe small businesses, rather than giant technology companies, could capture the greatest benefits from the productivity gains delivered by AI.
According to Gusto Chief Economist Aaron Terrazas, AI is significantly reducing the amount of capital and expertise required to start a business. That is making it easier for millions of people — from entrepreneurs selling products on Etsy to accountants in small towns — to launch businesses of their own.
Experts say the trend could mark the beginning of a new era of entrepreneurship, potentially reversing a model of employment dominated by large corporations that has grown stronger for nearly a century.
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