U.S. Business Applications Top 531,000 in June as Professionals Turn to Side Hustles
Updated
Updated · Forbes · Jul 22
U.S. Business Applications Top 531,000 in June as Professionals Turn to Side Hustles
3 articles · Updated · Forbes · Jul 22
Summary
More than 531,000 U.S. business applications were filed in June, extending business formation above pre-pandemic levels as professionals seek income beyond a single employer.
Nearly 26 weeks out of work for unemployed Americans in early 2026—up from fewer than 20 weeks in early 2023—has made reliance on one job riskier, while the monthly job-finding rate has fallen to about 24% from nearly 30% in 2022.
AI is lowering the cost of starting small: 58% of small firms used generative AI in 2025, up from 40% in 2024 and 23% in 2023, according to U.S. Chamber testimony.
SHRM found 21% of U.S. wage and salary employment is already at least 50% performed using AI tools, while about 7.9 million jobs face high displacement risk—adding urgency to build backup income streams.
Many of those new ventures may stay solo, start as consulting or freelance experiments, or never become employer businesses, but they reflect a broader shift in how workers define job security.
As AI creates a new class of entrepreneurs, who is being left behind in this economic shift?
Is the pursuit of multiple incomes the new career security, or a symptom of deepening economic instability?
Business applications are soaring, but what is the harsh reality for the two-thirds that fail within a decade?
U.S. Entrepreneurial Boom 2026: Record Business Formation, AI-Driven Side Hustles, and the New Face of Work
Overview
In mid-2026, the U.S. is seeing a remarkable surge in entrepreneurship, marked by a thriving environment for new businesses and a sharp rise in business applications. This growth is driven by evolving economic demands, such as the rising needs of older Americans, which have led to more businesses and job gains in healthcare and social assistance. Accessible technological advancements, especially in artificial intelligence, are making it easier to start and scale new ventures. Supportive policy changes and strong public confidence further fuel this dynamic period, creating a fertile ground for innovation and business growth across the country.