Millions of Americans are planning to start new businesses in 2023, driven by the rising cost of living and new ways of working.
That’s according to the latest "New Business Insights" survey commissioned by Intuit QuickBooks in December 2022. The survey of more than 15,000 adults throughout the US predicts which states will create the most new businesses in 2023, what these new businesses will be, and how inflation will continue affecting the jobs market.
Get the predictions for your state below:
Inflation’s silver lining: more innovation and competition
When times are tough, we get creative. Two-thirds of the survey respondents who want to start new businesses in 2023 (66%) say inflation is behind their decision. At the same time, two in five (45%) say technology is making it easier for entrepreneurs to diversify and boost income.
E-commerce driving new business growth
More than two in five new businesses set up in 2023 (46%) will use e-commerce, according to the QuickBooks-commissioned survey. Overall, more than a third (37%) will be product-based businesses, while two in five (42%) will sell a mixture of products and services.
Technology and retail among fastest growing industries
One in five new businesses in 2023 (22%) are predicted to be in the tech or retail industries. Arts and entertainment could be another growth industry, with many budding creatives hoping to find their audiences through social media.
Most new business owners will keep their day jobs
Flexible schedules and virtual connections are breathing new life into the side hustle. In 2023, almost two-thirds of new business owners (65%) will continue to work for other employers at the same time; dividing their workweeks between the two.
Three-quarters of new businesses will be self-funded
Seven out of 10 new business owners in 2023 (73%) will bootstrap their business by funding the startup costs with their own money. The growing popularity of online lending is also clear, with almost one in six (17%) planning to apply for business loans this way.
New Jersey predicted to be No.1 for new businesses in 2023
More than two in five respondents in New Jersey (42%) are considering starting new businesses in 2023—which indicates the state currently has more entrepreneurs per capita than any other. Florida and Hawaii are close behind in second and third place.
Delaware was No.1 for new business formations in 2022
In 2023, Delaware is predicted to drop nine places from its 2022 position at the top of the list of states with the most new business owners per capita—down to tenth place. Hawaii drops just one place: from second in 2022 to third in 2023.
As the map above, illustrates, the top five states with the most new business formations reported per capita in 2022 are:
- Delaware (23% of adult residents report starting a new business)
- Hawaii (22%)
- Virginia (21%)
- New Jersey (21%)
- Maryland (20%)
The 'Great Reshuffle' predicted to continue in 2023
What was once called “the great resignation,” but has more recently been called “the great reshuffle,” looks set to continue. Overall, a third of the survey respondents (33%) plan to switch jobs in 2023. Again, New Jersey comes out on top but this time, California is second on the list.
As the map above, illustrates, the Top 5 states predicted to have the most dynamic job markets in 2023 are:
- New Jersey (42% of adult residents plan to change jobs)
- California (41%)
- Hawaii (41%)
- Massachusetts (41%)
- Pennsylvania (41%)
Inflation will continue to cause churn in the labor market
The No. 1 reason for people wanting to change jobs in 2023, according to the survey, is the impact inflation had on their income in 2022. More than three in five (61%) say the need to earn more money is pushing them into the jobs market.
Sample and methodology
Intuit QuickBooks New Business Insights Survey 2023
Intuit QuickBooks commissioned an online survey, completed in December 2022, of 15,200 adults throughout the US, all of whom were over the age of 18. Percentages have been rounded to the nearest decimal place so values shown in charts and graphics may not add up to 100%. Responses were collected using Pollfish audience pools and partner networks with double opt-ins, random device engagement sampling, and post-stratification based on census data to ensure accurate targeting and results. Respondents received remuneration.
Disclaimer
This content, report and materials are for informational purposes only and should not be considered legal, accounting, financial, investment, or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc., or its affiliates do not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc., or its affiliates do not warrant that the material contained herein will continue to be accurate nor that it is completely free of errors when published. Readers should verify statements before relying on them.
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