Americans are hatching many new businesses, confounding expectations

Irina Ivanova - Moneywatch

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Even as the coronavirus was surging around the nation, Americans started millions more small businesses last year.

Nearly 4.5 million business applications were filed in 2020 — the highest number on record, and an increase of 24% from the year before, according to an analysis of Census data by the Economic Innovation Group.

Recessions typically see a drop in business formation as people’s personal assets are wiped out. That businesses are forming at such a high rate indicates underlying optimism about the economy, as well as a potential well of new jobs for people once vaccinations are available.

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