by Wolf Richter
Wolf Street
And my 2 cents about the high “failure rates” of new businesses, being a small-business owner myself.
New business formations, based on applications for an Employer Identification Number (EIN) with the IRS, exploded in June and July last year, then zigzagged up and down, and then this year exploded again and remained far above the historical range.
In September, 431,381 EIN applications were filed with the IRS, 49% above September 2019, and at the same red-hot level as September last year, according to data released by the Census Bureau today. For the first nine months of the year, EIN applications were up by 58% from the same period in 2019: