The U.S.'s post-pandemic startup wave is increasingly being fueled by solo entrepreneurs, with new research showing a sharp rise in one-person business formations tied to the growing availability of generative AI and coding tools.
The trend comes as businesses continue to navigate a period marked by geopolitical conflicts, including ongoing wars in Ukraine and Iran, elevated borrowing costs and persistent economic uncertainty.
In this context, business creation in the United States has remained historically strong, according to recent federal data. A new report from the Nasdaq Economic Institute found applications from one-person firms have climbed more than 20% since early 2025, while applications from businesses more likely to hire workers have remained largely unchanged. The findings are based on an analysis of U.S. Census Bureau business application data and were published Tuesday by Nasdaq.
Nearly half of the increase in solo business applications came from industries with high levels of AI adoption, including technology, finance and professional services. Nasdaq Chief Economist Phil Mackintosh said the concentration of growth in those sectors represents an early indication of where the economic effects of AI-related tools are appearing first, according to the institute's findings.
The analysis examined business applications classified as firms not expecting to hire workers or pay wages in the near term. While some of those businesses may eventually add employees, the category largely reflects entrepreneurs operating on their own.
Federal data shows overall business formation remains elevated. The U.S. Census Bureau reported that seasonally adjusted business applications reached 503,171 in April 2026, up 2.1% from March. The agency's Business Formation Statistics have been closely watched by economists since the pandemic-era surge in entrepreneurship began in 2020.
The Nasdaq report also highlighted a complicating factor behind the increase. Some of the growth appears linked to tax-reporting changes that prompted online sellers on platforms such as Etsy and eBay to formally register as businesses, adding to the number of non-employer applications.
Separate Census Bureau research released this year found AI adoption remains concentrated in knowledge-intensive sectors. A working paper based on the agency's 2026 Business Trends and Outlook Survey showed AI use was significantly higher in information, professional services and finance industries than in many other parts of the economy. Researchers found AI adoption rates reached between 50% and 70% among some of the largest firms operating in those sectors.
The findings come amid broader debate over the economic impact of AI. Recent reporting from Reuters noted growing investor scrutiny of whether heavy spending on AI is translating into measurable business results, even as technology companies continue pouring billions of dollars into infrastructure and development.
Meanwhile, separate reporting from Axios has documented increasing questions from companies and investors about how quickly AI investments are producing revenue gains, despite continued enthusiasm surrounding the technology.
Nasdaq's report did not address whether the surge in solo entrepreneurship will lead to significant job creation. Instead, it focused on the changing composition of new business formation, showing that recent growth has been driven primarily by individuals launching companies without immediate plans to build payrolls.
The institute noted that even if many of those firms remain small, higher rates of business creation are being recorded in some of the economy's most productive sectors.
