As signs of stagnation begin to appear in the U.S. labor market, an increasing number of workers are shifting from traditional job searches to launching their own businesses, fueling a wave of new entrepreneurship across the country. This shift marks a significant shift in the U.S. workforce, with many individuals turning to self-employment or independent contracting rather than waiting for new opportunities to arise in the cooling job market.
Recent analysis by labor market researchers at Revelio Labs reveals that with the slowdown in hiring, quitting, and layoffs — a phenomenon referred to as the “Great Freeze” — more Americans are choosing to create their own businesses. This is not limited to gig work or freelance projects, but includes people launching full-fledged businesses, actively addressing market needs or capitalizing on niche opportunities. This entrepreneurial shift is reshaping how people approach work and career, offering a solution to those who find themselves stuck in a stagnant job market.
This surge in entrepreneurship has broader economic implications that are encouraging for the U.S. economy. According to a year-long trend analysis, small businesses remain a central engine of economic growth in the U.S. They employ nearly half of the American workforce and contribute about 40–45 percent of the nation’s GDP. This underlines the importance of small firms not just in providing jobs, but also in driving innovation and economic dynamism. Small businesses are the backbone of the U.S. economy, and their growth is a sign of resilience and potential, even in the face of broader economic uncertainty.
What makes this wave of entrepreneurship even more significant today is the increasing use of digital-first business models. Many small businesses are leveraging online platforms, e-commerce, and AI-driven tools to lower overhead costs and access broader markets. This shift in business strategy has made launching a new venture more financially viable and logistically feasible than ever before. The accessibility of these tools allows new businesses to compete on a global scale, removing some of the barriers to entry that once made entrepreneurship daunting.
The expansion of the entrepreneurial ecosystem in the U.S. is also fueling a surge in innovation. According to the U.S. Small Business Administration (SBA), early 2025 saw a record number of patents filed by small businesses, with notable activity in sectors like healthcare technology and sustainable manufacturing. This surge in innovation is indicative of a dynamic entrepreneurial landscape where new ideas are being rapidly developed and brought to market. Entrepreneurs are not just creating businesses — they are developing new products and services that have the potential to transform industries.
In this context, the combination of economic pressures, changing workforce expectations, and the widespread availability of technology is reshaping how Americans think about work. For many, entrepreneurship is no longer a distant dream but a viable and realistic career path. With traditional job growth slowing and digital tools lowering the barriers to starting a business, more people are seeing this moment as a rare opportunity to strike out on their own.
This shift also aligns with broader cultural changes around work. The COVID-19 pandemic has changed how people think about job stability and career fulfillment. Many are now prioritizing flexibility, autonomy, and purpose over traditional job security. As remote work and freelance gigs continue to gain traction, the appeal of starting one’s own business has only grown stronger. Additionally, economic uncertainty and stagnation in certain sectors have made the idea of self-employment increasingly attractive, especially for those who feel their careers have plateaued or who are looking for more control over their professional destinies.
For aspiring founders, this moment presents an opening that may not come around again anytime soon. With traditional career paths less predictable and digital tools making it easier to start and grow businesses, entrepreneurship is becoming a more realistic and accessible path forward. People are taking advantage of the ability to launch businesses from anywhere, with minimal upfront costs, and are finding success in areas ranging from tech innovation to sustainable consumer goods.
The U.S. is witnessing a renaissance of small business creation, driven by a combination of economic factors and evolving societal norms. As more Americans embrace entrepreneurship, it is clear that a new wave of innovation and business creation is taking shape — one that could redefine the future of work in the coming years. For many, starting a business is not just an alternative to traditional employment; it is increasingly seen as the most viable path forward. This shift in mindset is transforming the American workforce and will likely have lasting effects on the economy, innovation, and the way people approach their careers.
