The Nasdaq Economic Institute released research linking the surge in one-person business formation to advances in generative AI and agentic coding tools, with applications from solo firms rising more than 20% since early 2025 while applications from companies likely to hire workers remained largely flat. The institute's analysis of Census Bureau business application data attributes this shift to AI making entrepreneurship more accessible while reducing the need for early hires. The recent entrepreneurship boom is increasingly being driven by solo operators, with nearly half of the growth in solo business applications coming from high AI-adoption industries such as technology, finance and professional services.
Solo Firm Applications Rose 20%+ Since Early 2025
Applications from one-person firms have risen more than 20% since early 2025, according to the Nasdaq Economic Institute's analysis of Census Bureau business application data. In contrast, applications from companies likely to hire workers have remained largely flat during the same period. The census category captures businesses that don't expect to hire workers or pay wages in the near term, though some businesses may do so later.
High AI-Adoption Industries Drive Nearly Half of Solo Business Growth
Nearly half of the growth in solo business applications has come from high AI-adoption industries such as technology, finance and professional services. Nasdaq chief economist Phil Mackintosh said in a release that the rise of solo founders in these high-productivity industries is "a meaningful signal for where AI's economic impact may show up first."
Tax Policy Changes Contributed to Registration Increase
Some of the increase in solo business applications appears tied to tax policy changes that pushed sellers on platforms like Etsy and eBay to formally register as businesses. This factor contributed to the overall rise in one-person firm applications alongside AI-driven entrepreneurship.
Report Raises Questions About Jobs Boom Translation
The Nasdaq report notes that AI may be making entrepreneurship more accessible while reducing the need for early hires, raising questions about whether a startup boom will translate into a jobs boom. The report states that even if many of today's solo founders never build large payrolls, a rise in business creation could still boost innovation, competition and productivity growth—especially if the new firms cluster in some of the economy's most productive industries.
FAQ
What did the Nasdaq Economic Institute find about solo founder business applications?
The Nasdaq Economic Institute found that applications from one-person firms have risen more than 20% since early 2025, while applications from companies likely to hire workers remained largely flat. The institute's research links this surge to advances in generative AI and agentic coding tools.
Why are high AI-adoption industries driving solo business growth?
Nearly half of the growth in solo business applications has come from high AI-adoption industries such as technology, finance and professional services. Nasdaq chief economist Phil Mackintosh stated that the rise of solo founders in these high-productivity industries is "a meaningful signal for where AI's economic impact may show up first."
How do tax policy changes relate to the increase in solo business registrations?
Some of the increase in solo business applications appears tied to tax policy changes that pushed sellers on platforms like Etsy and eBay to formally register as businesses, contributing to the overall rise in one-person firm applications.
