Talk SHOP · Issue 1 · October 2026
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Americans continue to start new businesses at record-setting rates according to the U.S. Census Bureau. New business applications have remained at historically elevated levels since rising sharply in 2020.
Americans filed nearly 5.7 million applications to start new businesses in 2025. Activity has remained strong in 2026, with applications through September running at a pace projected to surpass last year’s record total and reach 6.5 million.
Economists and business leaders have offered a number of explanations for the sustained increase in entrepreneurship, including remote work, changing labor market dynamics, and lower barriers to starting and operating a business.
One increasingly important factor is the rapid adoption of artificial intelligence. The SBA’s Office of Advocacy found that small businesses are increasingly adopting AI and that the gap between small- and large-business AI use has narrowed in recent years.
As shown below, AI adoption among firms with fewer than 250 employees more than doubled from late 2023 to August 2025, while larger firms have continued to expand their use of the technology. The result has been a narrowing gap between small- and large-business AI use.
Source: SBA’s Office of Advocacy, AI in Business: Small Firms Closing In (Sept. 24, 2025). Note: BTOS; author’s calculation.
AI adoption is table stakes in 2026. AI tools can help entrepreneurs develop business plans, draft contracts, build websites and software, create marketing campaigns, conduct market research, manage customer service, and handle accounting and bookkeeping tasks—reducing the time, cost, and complexity of launching and growing a business.
The recent surge in new business formation is one of the most notable economic trends of the post-pandemic era and signals a broader rise in entrepreneurship across the United States. As more Americans start and grow businesses, emerging technologies such as AI are becoming an increasingly important part of the entrepreneurial toolkit.
