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    Get Me Started: 2021 is set to be a record year for new businesses | US Small Business

    More new businesses are being formed this year than ever before. Literally so far.

    A year ago i I have written With the proliferation of startups, 12 months later, this trend continues to be significant.According to data from the U.S. Census Bureau analyzed by Economic Innovation GroupBy September 30, 2021, approximately 1.4 million new startup applications had been submitted to the government. This is compared to 1.14 million in the same period in 2020 and 987,000 in 2019. Previously it had decreased significantly every year.

    “In the remaining three months of this unparalleled year, it seems almost certain that the pace of business formation in 2021 will be sufficient to exceed the record total for 2020,” the researchers said. I am writing.

    The news definitely leaves an example of the reason for many. Why are so many new businesses formed in the wake of (actually in the meantime) one of the biggest economic collapses in recent memory? Why are so many people taking risks when it seems more reasonable to be drawn to the safety of the work of big government and businesses? Why do people want to start a business in an era of economic and political uncertainty?

    Like most big questions, there is more than one answer. But as a small business student, I can say that there are certainly some very specific reasons to explain what’s going on.

    The first has to do with need.

    Increasing entrepreneurship, as many report, is not necessarily about owning your own business or the romantic notion of “changing the world.” It’s more realistic than that.The reason is 22 million As a result of the pandemic, people suddenly lost their jobs.The reason is 35 million People had a hard time paying rent, and countless others could hardly afford to raise children. People like to talk about business ownership as a dream, but for many during last year’s recession (unfortunately it still remains), doing something to put food on the table is an economy. It was a necessary need. As a result, many people sold their products online, drove Uber, and became freelancers. People did this not to supplement their existing income, but to provide it.

    The second reason is capital.

    Capital has never been so widely available and cheap.Household wealth thanks to stock market surges and stimulus payments Soared To historically high prices. That means there are more savings for people to invest in their startups. Interest rates may rise shortly, but have remained at historically low levels for the past decade, providing an almost cost-effective environment for investors and venture capitalists to put their money at risk. ..

    From merchant advances to crowdfunding to credit cards and online lending services, other sources of funding have provided entrepreneurs looking for cash with a myriad of options. Technology, which used to be a big investment, has become so cheap that one Etsy seller can look and act like an international conglomerate. A proliferation of websites offer free or low-cost tax advice, email, business formation services, and legal services. The cost of starting a business is lower than ever, and the capital needed to start a business is more available than ever.

    Finally, there are many new opportunities.

    There are many places to wear a hat on the ring for those who want to start a business. Data show that accommodation and food services are by far the best in new business applications (+ 75% from 2019). Is this a surprise given the explosive growth of home sharing and rental platforms, and distribution services?

    Given the surge in telecommuting, do you think the number of professional and management service startups is also rising? Or are you seeing more people jumping into construction sites in the midst of a housing boom? Or is transportation and warehousing services up 74% due to supply chain challenges and calls for more drivers and space for all these online products? And do you know all those corporate workers who were so “blamed” and complained of being overworked before the pandemic? Many of them had time to launch online stores on Etsy, eBay, and Amazon (retail increased by 62%), but they probably held back the same full-time jobs that kept them busy!

    This is all great, but don’t go too far beyond yourself

    Very few of these new startups will actually be the next big thing. The majority probably have no employees. But it’s still good to see so many people wanting to be independent. They don’t want to rely on businesses for all their income. They look for challenges and, in some cases, dream of building something that provides a livelihood to their families as well as themselves.

    Despite what we read about globalism, big government, and corporate monopoly, entrepreneurs in this country because the basic economic and political structure of our country still enables the American dream. The spirit is still strong.

    Get Me Started: 2021 is set to be a record year for new businesses | US Small Business

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