40 Percent of Firms Emerge from Crisis Era (Image Credits: Unsplash)
Nevada – New research from the University of Nevada, Las Vegas, underscores the state’s remarkable recovery through a surge in entrepreneurship after the COVID-19 pandemic disrupted traditional job markets.[1][2]
40 Percent of Firms Emerge from Crisis Era
The report from UNLV’s Center for Business and Economic Research delivered a striking finding: as of 2024, 40 percent of all firms in Nevada with employees originated after the start of the COVID-19 pandemic.[2] Business filings spiked sharply in 2020 despite widespread shutdowns, including 78 days of casino closures in Las Vegas, and hit their highest level since 2006 the following year.[3] Closures stayed remarkably stable at around 22,000 annually from 2020 through 2023, avoiding the sharp rises seen during the Great Recession.
This resilience marked a shift. Traditional employment paths faltered amid tourism-dependent layoffs, yet new ventures filled the gap. Micro-businesses with one to five employees drove much of the employer firm expansion.[1] Andrew Woods, CBER director and co-author, observed that the surge demonstrated how Nevada’s economy adapted when conventional opportunities vanished, paving the way for growth in sectors like healthcare and professional services.[3]
National Rankings Highlight Nevada’s Edge
Nevada outpaced the United States in small business expansion from 2019 to 2022, with overall growth of 12.9 percent compared to the national 9.0 percent.[2] The state ranked third nationally in growth of small employer businesses per 1,000 residents, climbing from 38th in 2019 to 27th in 2022. Nonemployer firms placed 11th, adding 8.3 per 1,000 residents versus the U.S. average of 7.2.[1]
Small business density per capita rose steadily, from 95.3 in 2017 to 111.3 in 2022, exceeding national trends. Jinju Lee, CBER associate research director and co-author, attributed this to structural shifts, including easier online platforms and government aid that fueled lasting creation across sectors.[3] Such momentum positioned Nevada in the top five states for new business formations from January 2025 to January 2026, per another analysis.[3]
Sectors Fueling the Boom
Growth spread across industries, though certain areas led the charge. For nonemployer firms, transportation and warehousing topped net gains with 9,104 additions from 2019 to 2022, followed by other services, administrative support, professional services, and health care.[2]
- Transportation and Warehousing: 24.4% growth rate
- Accommodation and Food Services: 21.8%
- Wholesale Trade: 19.2%
- Administrative and Support Services: 18.8%
- Other Services: 16.8%
Small employer firms showed similar diversity, with professional services netting 1,138 new establishments. Job gains concentrated in accommodation and food services (8,101 jobs), professional services (5,190), construction (5,020), health care (4,929), and retail trade (3,022).[2] Unlike national patterns, Nevada avoided deep losses in most sectors.
Jobs Backbone Strengthens
Small employer firms supported 45.0 percent of Nevada’s private-sector jobs in 2022, up from 42.8 percent in 2019, and added 54,520 positions that year alone – a 10.4 percent rise.[1] These businesses, defined as under 500 employees, comprise 99 percent of Nevada firms and proved vital to recovery as larger employers lagged.
Examples abound, such as X2L BIO, a 2024 Las Vegas sports tech startup from UNLV’s Black Fire Innovation Hub, which leverages remote fitness testing.[3] CEO Eric Sanchez praised the supportive local ecosystem, calling it “green fields” for innovation.
Key Takeaways
- Nevada’s 40% post-COVID firm share leads the nation, with stable closures.
- Ranked third in employer growth per capita; small firms drive 45% of jobs.
- Diversified sectors like transportation and professional services propelled gains.
The UNLV report, Entrepreneurship and the COVID-19 Pandemic, signals a transformed economy where small businesses anchor resilience and future prosperity.[2] What do you think about Nevada’s entrepreneurial edge? Tell us in the comments.
