A new generation of business formation

Taylor Bowley

Joe Wadford

July 2026

Business formation continues to trend higher, suggesting entrepreneurial activity remains resilient despite economic uncertainty. Bank of America data indicates households are still willing to take on risk and pursue new business opportunities.
Gen X remain the largest group of business founders, according to Bank of America payments data. Yet Gen Z are contributing disproportionately to recent growth, with application growth in June more than double that of Millennials and Gen X, suggesting a new generation of entrepreneurs is emerging.
Recently, there has been a divergence between overall business applications and those that signal planned wages. This is most evident within the information sector, suggesting AI is likely playing a role in new business formation.

Read our full analysis for a more in-depth look at these trends.

Full analysis

Additional Materials:

See all insights

This year’s study finds that workers’ financial well-being hit a four-year high, even as cost-of-living pressures persist.

Small business profitability has picked up along with hiring, but persistent cost pressures continue to constrain growth.

Why have lower-income households accounted for a larger share of retail spending but also traded down the most?