Recent economic data and entrepreneurship reports are pointing to a very important trend:

More Americans are starting small businesses — especially service businesses — after layoffs, stalled careers, or frustration with the traditional job market.

This trend accelerated after COVID, but it continues today as:

• white-collar layoffs increase,
• corporate hiring slows,
• and older workers face growing challenges finding equivalent positions.

Here are some of the most important recent statistics and trends.

Record Small Business Formation Activity

According to recent business formation statistics, new business applications remain historically elevated in the United States. One report noted business formations reached roughly 478,800 per month in 2025 — dramatically higher than long-term historical averages.

Meanwhile, the U.S. Small Business Administration reported:

• over 1.28 million establishments opened,
• compared to roughly 1.12 million closings,
• resulting in a net gain of more than 155,000 businesses.

Small Businesses Continue to Drive Job Creation

Small businesses remain the dominant force in American entrepreneurship.

Recent SBA and labor data show:

• small businesses account for 99.9% of all U.S. businesses,
• employ nearly 46% of the private workforce,
• and have generated millions of net new jobs over the past several decades.

One recent analysis noted that between Q1 2023 and Q3 2025:

• small businesses created approximately 58% of all net new private sector jobs.

The Rise of the “Solo Entrepreneur”

One of the most important trends for commercial finance consultants and factoring brokers to understand is the explosive growth of non-employer businesses. These are:

• one-person businesses,
• consultants,
• freelancers,
• agencies,
• home-based service businesses,
• and side-gig operations.

The U.S. Census Bureau recently reported:

• nearly 29.8 million non-employer businesses in America,
• up significantly from prior years.

This is extremely important because many of these businesses:

• need working capital,
• experience cash flow challenges,
• and eventually become financing prospects.

Many Americans Are Starting Businesses After Layoffs

Several recent reports point directly to displaced workers turning toward entrepreneurship.

Business Insider recently described how workers are:

• abandoning stalled job searches,
• and increasingly launching businesses instead.

One article described the current labor market as…

“The Great Freeze”

This is where:

• hiring slows,
• workers stay put,
• and many laid-off employees struggle to regain comparable positions.

As a result:

• consulting,
• freelancing,
• self-employment,
• service businesses,
• and independent contracting

continue to grow rapidly.

Older Workers Are Driving Entrepreneurship Growth

Perhaps one of the most significant statistics involves Americans over age 50.

According to recent Kauffman Foundation-related research cited by Kiplinger:

• nearly one-fourth of new businesses are now started by founders between ages 55–64,
• up substantially from prior decades.

The article also noted:

• entrepreneurs over 50 are often more successful than younger founders because of:
  • experience,
  • business relationships,
  • industry knowledge,
  • and established networks.

This directly mirrors what many factoring brokers see in the field:

• experienced professionals leaving corporate America
  and launching:
• consulting firms,
• trucking companies,
• staffing agencies,
• logistics firms,
• construction companies,
• and service businesses.

Why Service Businesses Are Growing So Rapidly

Service businesses are especially attractive after job loss because they:

• require lower startup capital,
• can often operate from home,
• leverage prior career skills,
• and can start quickly.

Examples include:

• consulting,
• bookkeeping,
• marketing agencies,
• staffing firms,
• logistics companies,
• coaching,
• notary services,
• transportation services,
• and B2B sales consulting.

Technology and AI tools are also reducing startup barriers:

• website builders,
• CRMs,
• social media,
• automation,
• and AI-generated content

allow individuals to launch businesses faster than ever before.

One Statistic That Should Get Attention

Recent surveys found:

• dissatisfaction with corporate America
  is becoming a major reason people launch businesses.

Other major motivators include:

• wanting to be their own boss,
• flexibility,
• autonomy,
• and control over income.

For many displaced workers, entrepreneurship is no longer viewed as merely a “dream.”
It is increasingly viewed as a practical survival strategy.

Why This Matters for Factoring Brokers

This trend creates enormous opportunity for factoring brokers, commercial finance consultants, and working capital advisors. Why? Because newly formed service businesses often experience:

• uneven cash flow,
• growth-related working capital shortages,
• slow-paying invoices,
• payroll pressure,
• and limited access to bank financing.

In other words:
today’s laid-off corporate employee may become tomorrow’s:

• staffing company owner,
• trucking operator,
• consultant,
• subcontractor,
• or entrepreneur needing financing solutions.

Ironically, while AI is eliminating or restructuring certain white-collar positions, it is simultaneously making entrepreneurship easier.

AI can now help small business owners:

• build websites,
• create marketing,
• automate communication,
• generate content,
• and operate leaner businesses.

But the growth of entrepreneurship may actually increase demand for alternative financing, commercial factoring, and consultative business development professionals. Because even in an AI-driven economy:
small businesses still need:

• cash flow,
• relationships,
• and trusted advisors.