Since the COVID-19 pandemic, the number of entrepreneurs launching businesses in the U.S. has skyrocketed. Recent statistics from the U.S. Department of the Treasury show an average of 430,000 new business applications were submitted each month in the U.S. in 2024, a 50% increase from 2019. [This pace continued in 2025.] Studies suggest that a rise in household income during the pandemic and the arrival of new technology solutions in the online marketplace played key roles in driving entrepreneurial growth.
Are small businesses dying prematurely?
But recent stats also show that the increase in entrepreneurial enthusiasm hasn’t translated to an increase in small business success. In March 2023, statistics from the U.S. Bureau of Labor Statistics reported that 23.2% of businesses that opened in March 2022 had failed. For the year ending in March 2022, only 20.8% failed. And for the year prior to that, only 18.4% failed.
The decline in small business success may be due to the unique challenges today’s business owners face. The current state of the economy has put Main Street business owners in a position where they need to raise the prices of their products and services while also increasing staff wages.
Inflation and tariffs have also added to the cost of doing business, forcing owners to risk passing those costs on to customers or absorbing the losses until markets shift. Either option can leave small business owners on shaky ground.
The key skills needed to navigate today’s market
To thrive in a challenging Main Street marketplace, founders must adapt to change. Experts point to adaptability as key to succeeding in an evolving market.
The willingness to embrace artificial intelligence has been a litmus test for adaptability in recent years. Those who have adapted by adding AI tools to their arsenal have tapped into a more efficient way to do business. In contrast, those who have avoided AI due to intimidation or business inertia face a high risk of falling behind.
Adaptability is also crucial in developing and adjusting business plans. Business dreams become realities when founders implement forward-thinking plans. As the saying goes, those who fail to plan, plan to fail.
Performance management is another skill driving success in today’s business environment. Recent reports show that 34% of small businesses have unfilled positions, and 47% say they can’t find qualified applicants.
Business owners must not only be able to attract and retain talent but also know how to get the best results from their staff. HR experts often point to staff appreciation as a key driver of effective performance management, and reports show that meaningful recognition improves loyalty and engagement, especially among younger generations now entering the workforce.
The types of businesses that are most valuable in today’s market
Starting the right kind of business or pivoting a business into areas that are thriving is a factor that can significantly increase a founder’s capacity for success. This is where research comes into play, empowering entrepreneurs to identify a promising market and the factors that will enable them to stand out and deliver unique value.
Some of today’s thriving markets include childcare, which is in high demand, and assisted living, which is being taxed by today’s aging population. The tech industry also offers promising opportunities due to the growing demand for AI-driven tools that can automate processes and increase efficiency. Additionally, the markets for professional and personal services, such as consulting, health and wellness, and accounting and bookkeeping, have remained in high demand. Home and property services, such as landscaping and lawn care, cleaning services, pet services, and home improvement and repair, are also thriving markets in the current economy.
Manufacturing is also making a strong comeback across many verticals. Entrepreneurs interested in manufacturing will also find temporary cost savings on government loans, as the Small Business Administration (SBA) recently changed its upfront fee structure to benefit manufacturing businesses.
The drive that makes small business dreams a reality
Surveys show that freedom and passion are the top factors inspiring entrepreneurship in today’s small business market. Founders launch businesses because they want to focus on what matters to them while also calling the shots along the way.
However, getting a launch off the ground and keeping it in orbit long enough to realize the American dream takes more than passion. Founders must develop a strong work ethic to thrive. On top of that, they need to develop a strong business plan and then stay committed to executing it in a way that addresses the many bumps in the road they are bound to experience.
Business owners with those characteristics will be well equipped to navigate today’s evolving small business environment.
Brian Aagaard, founder of Cooperhawk Business Brokerage, is a seasoned professional with decades of experience across both corporate and privately held companies. After a long and successful career in the corporate world, Brian launched Cooperhawk to bring a personal, relationship-driven approach to business brokerage—one that prioritizes integrity, transparency, and the success of Main Street business owners. While its foundation is rooted in Main Street businesses, Cooperhawk also has the expertise to guide more complex transactions, reflecting a forward-looking vision for sustainable growth in the evolving business marketplace.
Photo courtesy Kateryna Hliznitsova for Unsplash+