Pandemic sparks entrepreneurial spirit
The COVID-19 pandemic has been a challenging time for many people, but it has also inspired some to pursue their dreams of starting their own businesses. According to the Census Bureau, Americans are opening more new businesses in 2023 compared to 2022. In the first quarter of 2023, there were 1.36 million new business applications, an increase of 8.4% from the same period in 2022. This trend reflects the resilience and creativity of the American people, who have adapted to the changing economic and social conditions caused by the pandemic.
Reasons behind the boom
There are several factors that have contributed to the surge in new business openings. One of them is the availability of government stimulus and relief programs, such as the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL), which have provided financial support and incentives for small businesses. Another factor is the shift in consumer behavior and preferences, which have created new opportunities and demands for products and services that cater to the post-pandemic lifestyle. For example, online shopping, delivery, health and wellness, and remote work are some of the sectors that have seen growth and innovation in recent times.
Additionally, some people have decided to start their own businesses after losing their jobs or facing uncertainty in their careers due to the pandemic. According to a survey by FreshBooks, a cloud accounting software company, 27% of new self-employed professionals in 2022 said they were motivated by a layoff or reduced hours at their previous jobs. Moreover, some people have realized their passion or potential during the lockdown and quarantine periods, and have decided to turn their hobbies or skills into businesses. For instance, some people have started selling homemade crafts, baked goods, or digital content online.
Challenges and opportunities
Starting a new business is not without its challenges, especially in the midst of a global health crisis. Some of the obstacles that new entrepreneurs face include access to capital, market competition, regulatory compliance, and customer acquisition. Furthermore, some businesses may face uncertainty or volatility as the pandemic situation evolves and as new variants of the virus emerge.
However, there are also opportunities and resources for new businesses to succeed and thrive. For example, some businesses can leverage technology and digital platforms to reach more customers and operate more efficiently1. Some businesses can also benefit from networking and mentoring programs that can provide guidance and support from experienced entrepreneurs. Additionally, some businesses can take advantage of the changing consumer trends and preferences that have emerged from the pandemic, such as increased demand for convenience, safety, sustainability, and social responsibility1.
New business openings on the rise nationwide – CBS News
The CBS News video report on this topic features an interview with Hope King, senior business reporter at Axios, who shares her insights and analysis on the reasons behind the boom in new business openings. She also discusses some of the challenges and opportunities that new entrepreneurs face in the post-pandemic economy. The video report can be watched here.
