Information Technology Industry Has the Biggest Growth of U.S. Businesses

Business creation in America has grown by 19% over the past five years, with new tech startups launching at the fastest pace.

A visualcapitalist.com analysis shows that, over the past three decades, small businesses have generated about 60% of new jobs in the U.S., serving as a critical pillar of the economy. However, a significant portion of this growth has been driven by a small group of firms.

The cited source highlights business expansion by industry, based on data from JPMorgan Asset Management. According to them, the information industry recorded a 58% growth rate between December 2019 and September 2024, three times the national average, in new business start-ups since the end of 2019. In addition, it ranks as one of the top two sectors that will drive real US GDP growth in 2025. In particular, software publishing companies recorded one of the fastest growth rates in the number of start-ups of all industries between 2019 and 2024, followed by data processing, hosting and related activities. With a 32% increase in the number of new companies, professional and business services recorded the second highest expansion, according to the data. Meanwhile, education and health services recorded a 25% increase, ranking third. The following sectors are: service provision (+20%), other services (+18%), financial activities (+18%), construction (+14%), manufacturing (+13%), goods production (+12%), leisure and hospitality (+11%), trade, transportation and utilities (+7%), natural resources and mining (+4%).

It is worth noting that new business registration applications averaged 240,000 each month in 2024 - 50% more than in 2019. In addition, the share of entrepreneurship among women and people of color remained near record levels.