2023 US Business Openings on Track to Beat Last Year’s All-Time High, Led by Hotels & Travel and Home Services Businesses

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As recent reports have indicated positive momentum for the US economy – from GDP increasing, unemployment decreasing, and inflation dropping from last year's high – entrepreneurs are on track to make 2023 a banner year for new business growth. National business openings on Yelp from January through July 2023 have surpassed openings from the same time period last year, a year which hit an all-time high for new businesses. This strong national growth is reflected across all categories on Yelp and for the first time, every U.S. state, including DC, surpassed new business openings compared to pre-pandemic levels (2019). Yelp data also shows a wave of new minority-owned businesses, as entrepreneurs from underrepresented communities opened more businesses this year than 2022.

Entrepreneurs are already breaking records this year. In fact, each month in 2023 has seen growth of at least 15% in new businesses compared to its respective month over the past four years, with every month setting a new all-time high since 2019. The first seven months of 2023 have seen a 25% increase in new businesses compared to the same period in 2022, and a 46% increase compared to the same period in 2019.

Every category on Yelp demonstrates strong new business growth led by hotels & travel and home services

New business openings increased across every category on Yelp when comparing January through July 2023 to the same time period last year. Driving business opening growth nationally are hotels and travel (up 39%), home services (up 37%), auto (up 27%), event services (up 27%), and local services businesses (up 23%).

As consumers prioritize summer travel despite inflated prices, hotels and travel businesses are seeing the highest growth compared to last year, with RV rental (up 84%), travel agents (up 76%), vacation rentals (up 54%), airport shuttles (up 30%), and walking tours (up 15%) seeing some of the highest growth in new business openings.

Consumers are also finding an array of new businesses that can support their home improvement projects, shown through substantial new business growth for home services, up by 37% compared to the same time period last year and up by 108% compared to 2019. As reported in Yelp’s 2023 Summer Home Trends, consumers are upgrading their outdoor spaces to entertain guests, with notable growth in patio coverings (up 70%), landscape architects (up 68%), decks and railing (up 60%), pools and hot tub service (up 52%), lawn services (up 49%), and artificial turf businesses (up 30%)

Diverse entrepreneurs opened more businesses this year than 2022, with Black, Latinx, and LGBTQ-owned businesses seeing growth above the national average

Reports of “Spending Girl Summer,” ranging from the economic impact of women-led stadium tours and Barbie’s record-shattering box office numbers, have spotlighted women as major drivers of economic growth. This year, Yelp data shows more than 33,000 new women-owned business openings, a 19% increase compared to the same time period in 2022.

Every month this year has seen more minority-owned business openings compared to its respective month last year. LGBTQ-owned (up 33%), Black-owned (up 28%), and Latinx-owned (up 28%) businesses saw growth above the national average, when comparing January through July 2023 to the same time period last year. Asian-owned businesses (up 13%) also saw significant business openings across the country.

Every state experienced increased new business openings with the East Coast driving the highest growth

While every state saw an increase in new business openings, states on the East Coast are seeing the most significant percentage growth in new businesses compared to the same time period last year, with Rhode Island (up 46%), West Virginia (up 46%), Delaware (up 45%), and Vermont (up 38%) topping the list. New home services businesses proved to be a major catalyst in each of these states, posting the largest number of new businesses in any category.

However, when ranking all states by total number of new business openings, California, Florida, Texas, New York, and Georgia saw the largest number of new businesses. Notably, Florida moved up to the second highest, bumping Texas to third compared to last year’s business openings. Major metros in these states are so far driving the highest number of new openings this year – Los Angeles, CA; New York, NY; Miami, FL; Dallas, TX; and Atlanta, GA.

As reasons for economic optimism grow, it’s promising to see new business growth approach a new all-time high, with the uptick being reflected in minority-owned businesses as well. Yelp will continue to track these economic trends, keeping the pulse of national and local shifts in the economy.

If you'd like additional detail on how the economy is shifting, please contact us at press@yelp.com or join our mailing list to receive an email when new reports are released.

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