Have you noticed that as a small business owner, you suddenly have a lot of company? The startup surge is still in high gear. In 2023, according to the U.S. Census Bureau, Americans filed a record-breaking 5.5 million applications to start new businesses. Last year, there was a slight dip to 5.21 million applications filed. In August of this year, 473,679 new business applications were filed, and it’s expected the year will end with approximately 5.7 million business applications filed. New business formation is running about 50% above pre-pandemic levels.
So, what’s behind this entrepreneurial spike? A mix of necessity, opportunity, and mindset shift. Layoffs—especially in tech—pushed many skilled professionals to bet on themselves. Others, frustrated by rising costs and stagnant wages, turned a side hustle into a main gig. And for a growing number of people, entrepreneurship isn’t a fallback plan—it’s a freedom plan. Data from Gusto shows that two-thirds of new founders say a job loss or economic uncertainty nudged them to start a business, while nearly half were inspired by the flexibility and autonomy of self-employment. And recent research from Zen Business reveals that 80% of Gen Z think they will “become the most entrepreneurial generation in U.S. history,” and 75% want to be entrepreneurs.
The Birth of the Boss Boom
Add in an economic climate that’s still unpredictable, AI tools that make launching a startup easier than ever, and a cultural moment that celebrates being your own boss—and you have a perfect recipe for an entrepreneurial boom. What’s emerging isn’t just a wave of startups, but a redefinition of success itself: more people building the work lives they want, on their own terms.
To unpack what’s really driving this surge, I interviewed Dave Charest, Director of Small Business Success at Constant Contact, and Tami Cannizzaro, Chief Marketing Officer at Thryv. Both work closely with entrepreneurs navigating this new landscape, and they’re seeing the “boss boom” from two key vantage points: how small businesses are finding smarter ways to connect with customers—and how technology is empowering more people to take the leap into ownership.
Here’s what they’re seeing—and why it matters for the future of entrepreneurship.
Rieva Lesonsky: What’s fueling this current startup surge in entrepreneurship?
Dave Charest: When it comes to the entrepreneurial spike, people are rethinking what work looks like for them. After years of uncertainty, many are ready to take control of their careers, build something of their own, and leverage their skills in ways that align with their personal goals. Small businesses are resilient and creative, and now more than ever, people are confident they can find a path to success. And communities are embracing entrepreneurs. SMBs are everywhere—92% of Americans interact with a small business every week.
Tami Cannizzaro: One of the more interesting dynamics we’re seeing is the increase in young people turning to entrepreneurship in response to a slowing job market and the shrinking demand for entry-level tech jobs. The promise of a big job market for computer science has not panned out for thousands of students who followed the advice that technology was a great sector and would offer $100K+ jobs right out of school! The availability of technical jobs has slid backward due to the emergence of AI. Students are looking for an exciting career path, and many of these engineers have a builder mindset, so entrepreneurship is a great choice.
Lesonsky: Do today’s motivations for starting a business differ from previous waves of entrepreneurship?
Charest: History shows that tough times spark new businesses. Back in 2020, during the first four months of the pandemic, new business applications in the U.S. jumped by 137%. The drive for independence and control has always been there, but today’s entrepreneurs are also chasing flexibility and purpose. They want businesses that fit their lifestyle, make an impact in their communities, or even grow from personal passions and hobbies. With today’s technology, it is easier than ever to start small and scale smart, something earlier generations didn’t have access to.
Cannizzaro: A lot of entrepreneurial motivation is driven by the desire to make an impact on the world around them and build something, rather than work for a large corporation. Today’s entrepreneurs often start businesses around personal interests or passion projects that turn into new businesses. The emergence of AI and the democratization of tech have made starting a business more accessible.
Employees have grown accustomed to the benefits of workplace flexibility as well. So, we’re seeing lots of skilled and talented people reject the traditional workplace model to take on freelance and consulting roles. They want to be their own bosses and control where, when, and how they work.
Lesonsky: The white-collar recession of the early ‘90s created a lasting generation of new entrepreneurs. Do you think this boss boom is a short-term reaction to layoffs and economic shifts, or the start of a lasting cultural change?
Charest: The current economy is pushing people who are already leaning toward entrepreneurship, including the 50% of Americans who have a side hustle. Some of that momentum comes from economic shifts, but it also points to a lasting cultural change. People are rethinking traditional career paths, and today’s digital tools make it easier than ever to launch and sustain a business. It reflects a broader shift toward more entrepreneurial thinking in the workforce.
Cannizzaro: The boss boom signals what I see as a lasting change. AI and automation, along with digital platforms that handle everything from marketing and payments to HR and payroll, have eroded the barriers to entry. It’s easier than ever to strike out on your own.
Lesonsky: Are these new startups ignoring factors like inflation and interest rates, planning around them, or do they still act as deterrents for some?
Charest: No small business likes dealing with inflation or higher interest rates, but resilient entrepreneurs are planning around them. Our recent Small Business Now report found 44% of SMBs cite the rising cost of goods as their top concern. Many are looking for efficiencies and getting creative with cost-effective marketing, such as email, social media, and SMS campaigns, or finding ways to deliver value to customers without simply raising prices. Of course, for some, these factors are real challenges—but they’re finding ways to adapt.
Cannizzaro: Successful entrepreneurs are calculated risk takers. They see a roadblock as something that can be overcome. Right now, one of the biggest issues is access to capital. High interest rates have led to a decline in VC and investor spending. But startups aren’t throwing in the towel. They’re raising money through crowdfunding, bringing on partners, and in some cases, dipping into their own pockets.
Lesonsky: Are specific industries or business models (e.g., online, service-based, gig-related) seeing more activity than others?
Charest: We see strong activity in service businesses, online shops, and gig work. These models make sense because you can start small, grow without heavy upfront costs, and adapt quickly when the economy is uncertain.
Cannizzaro: The gig economy is flourishing. According to World Bank estimates, the number of gig workers globally is around 435 million. With AI and automation, those numbers are going to keep rising. Gig jobs are available across sectors, such as data analysis in tech, customer service in retail, and content creation in marketing. The sky is the limit. Gig work is appealing because it offers the desired flexibility and the opportunity to work with companies that align with your goals and beliefs.
Lesonsky: Have side hustles lowered the perceived risk of starting a business, since people can “test the waters” first?
Charest: Absolutely. Side hustles let people experiment without quitting their day jobs, so they can validate ideas, build a customer base, and learn the ropes before fully committing. It’s a low-risk way to explore entrepreneurship and gain confidence.
Cannizzaro: Side hustles offer those calculated risk takers an ideal way to dip their toes in the water. And the time-saving benefits of AI, automation, and technology platforms make it that much more achievable to balance your side gig with your “real” job.
Lesonsky: What are the most common mistakes you’ve seen new entrepreneurs make during this surge?
Charest: One of the biggest mistakes is waiting too long to invest in marketing. A great product or service won’t go far if people don’t know it exists.
Another common miss is underestimating the power of customer engagement, consistency, and technology to reach people more efficiently.
Cannizzaro: Moving too fast without doing the proper research is a big one. The most successful entrepreneurs have held entry-level jobs or have hands-on experience before starting their own businesses. You need proof of concept and a strong understanding of the competitive landscape.
I agree that not focusing on marketing is another big one. Designing a great product or service isn’t enough. Customers aren’t magically going to appear. Investing in visibility, branding, and customer acquisition is critical.
Lesonsky: Do you think this wave of entrepreneurship will reshape the job market in the next 5–10 years?
Charest: As more people start businesses, we may see more flexible, hybrid work arrangements and a shift toward gig and project-based employment. Entrepreneurship encourages creativity and self-reliance, which will influence how people think about careers and jobs in the long term.
Cannizzaro: Flexible work, which came on strong during COVID, has already reshaped the job market in many ways. The reliance on traditional workplace employment structures will continue to diminish as more people seek to craft a work-life dynamic that works for them, like freelancers and solopreneurs.
Lesonsky: If someone is considering joining this entrepreneurial wave, what one piece of advice would you give them before they leap?
Charest: Do your homework and start small. Take advantage of the resources in your community. Focus on what you do best. Don’t be afraid to test your idea with a side hustle or pilot program, and always think about how technology can help you reach customers efficiently. Being resilient and adaptable is more important than having everything perfect from the start.
Cannizzaro: Let technology work for you. Use AI to research the competitive market and create pricing and inventory models. Use a marketing platform to make sure people know about your business. This kind of platform manages websites, optimizes online listings, SEO, and social media. Technology is democratizing entrepreneurship—take advantage!
Photo courtesy Curated Lifestyle for Unsplash+
Rieva Lesonsky is President of Small Business Currents, LLC, a content company focusing on small businesses and entrepreneurship. You can find her on Twitter @Rieva, Bluesky @Rieva.bsky.social, and LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com.
