💼 American Startups Are Running Leaner Today, Compared to the 1990s

What We’re Showing

This chart tracks the average number of workers at American startups at birth, from 1994 to 2023.

Data is sourced from the Bureau of Labor Statistics, published January 2024. 

ℹ️ Per the source, startups are firms or establishments that are less than a year old.

Key Takeaways

American startups in 2023 had an average of approximately 4 workers compared to 7 in 1992.

As the ability to turn an idea into a business grows more viable, the number of startups in America has jumped considerably since the 90s.

In 2023, America saw 1.5 million new startups compared to around 500,000 in 1994.

However, the number of jobs created by these new startups haven’t kept pace. It’s possible that technology gains have made it easier for startups to run leaner while still doing business.