US Business Formation Trends by Sector

We’ve compiled data on US business formation trends by sector to help business owners make good decisions when starting and running a small business.

Ready to Start a Business? Read our How to Start a Business guide to learn more.

US Business Formation Trends - Skip Ahead:

• Sector Rank by Year
• Sector Ranking by Revenue
• TRUiC's Most Popular Business Ideas - Top 5 Sectors

US Business Applications by Sector

Below we can see the breakdown of new business applications in 2021 by their NAICS Sector. Retail trade continues to be the most popular sector to start a business in the US. 

Fastest Growing Sectors

This graph shows the sectors with the largest growth since 2015.

Business Sectors by Revenue Size

Each business sector’s size is proportional to the amount of revenue generated. Revenue is an important metric for determining industry profitability. A small business owner may want to consider an industry’s revenue, profit, and profit margin to determine how much capital they should invest into their company.

Click on a sector to see that particular sector’s:

• Revenue: Total amount of money generated from that sector’s economic activity. Revenue = money earned
• Profit: Total amount of money remaining after subtracting a sector’s expenses from its revenue. Profit = revenue - total expenses
• Profit Margin: The expected percentage of profit generated per sale. Profit Margin = (Profit/Revenue) x 100
  • Example: A profit margin of 10% indicates that for every $100 of revenue made in sales, 10% or $10 is left as profit. 
• Number of Businesses: The number of businesses operating within the sector.
• Employment: The number of employees within the sector.

TRUiC’s Most Popular Business Ideas | Top 5 Sectors

This is a list of the top five business sectors by revenue and our top business ideas under each category.

Manufacturing

1. CNC Machining
2. Chocolate Making
3. Woodworking
4. Clothing Line
5. Welding

Retail Trade

1. Nightclub
2. Clothing Boutique
3. Grocery Store
4. Convenience Store
5. Liquor Store

Finance and Insurance

1. Microlending Company
2. Bitcoin Mining
3. Cryptocurrency
4. Currency Trading
5. Debt Collection Agency

Healthcare and Social Assistance

1. Delivery
2. Funeral Home
3. Massage Therapy
4. Assisted Living Facility
5. Temp Agency

Construction

1. Parking Lot
2. Construction Contractor Business
3. Electrician
4. Junk Removal
5. Fence Company

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