Business Applications Remain Strong: A Positive Sign for Entrepreneurship Even with February’s Decline

By SBE Council at 11 March, 2026, 5:56 pm

by Raymond J. Keating -

The latest data on business applications from the U.S. Census Bureau for February 2026 point to declines in total business applications, which marked a reversal from January's gains. However, these February declines don't even put a dent in the positive story being told about the desire to start up one's own business in the U.S.

In February 2026, the number of business applications (i.e., "business applications for tax IDs as indicated by applications for an Employer Identification Number (EIN) through filings of the IRS Form SS-4") declined by 5.8 percent percent to 496,443. That included high-propensity applications (i.e., applications with a high likelihood of becoming businesses with employees), which declined by 1.2 percent to 145,918.

As we've been tracking (see the following charts), though, business applications have jumped to a consistently higher level since the pandemic. The February declines rank as minor deviations at these higher levels.

Total Business Applications

High Propensity Business Applications

Business applications are not actual new businesses, but represents one of the first steps taken to starting a business. Continued high levels of business applications should provide hope that America's entrepreneurial spirit continues to shine.

That will be critical as technological advancements, such as artificial intelligence, partake in what Joseph Schumpeter called "creative destruction," whereby old businesses or even industries are transformed or replaced by new business and industries. The entrepreneur stands at the center of the creative destruction that drives wealth creation, and economic, income and job growth, as well as being able to capitalize on the transformations and the resulting freeing up of resources for still more new undertakings.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. He is the author of " The Weekly Economist " book series, and 10 Points from Walt Disney on Entrepreneurship .