Entrepreneur’s view: the pandemic is driving a small business boom
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The ongoing pandemic has prompted an increasing number of American citizens to try their luck and seek to start small businesses. The relatively rapid increase in business creation comes from a new report from Zapier.
The report reveals that the creation of new businesses is more than 50% higher than it was before the pandemic. The use of automation tools is perhaps one aspect that perhaps facilitates the process of operating a business. The usefulness of these tools was noted by 57% of survey respondents.
Many entrepreneurs undertake market research to assess whether there is an opportunity to turn their idea into a successful business and then seek funding. While some startups fold, the top performers were able to fill a gap in the market, or they managed to climb into an opening created by the COVID-19 pandemic.
Where startups falter or falter is due to a complex series of factors related to both the situation, the environment and the agency of those at the top. Another reason relates to the market the startup is entering in relation to entry costs and the time required to bring the new product or service to market.
The region with the greatest growth in new businesses is in the Southeastern United States, with Mississippi, Georgia, South Carolina, Louisiana and Alabama leading the start-up load .
The question is, how many of these companies will survive? It is likely that the most successful small businesses will be the ones most able to weather the conditions the pandemic has presented.
The answer seems to be that many American startups are doing well. This is confirmed by the fact that 88% of entrepreneurs consider their business stable enough to last another year. As a result, almost nine out of 10 respondents indicated that their business had achieved some endurance.
Of this proportion, a large number are planning to expand. Here, 68% of companies plan to hire more people in 2022. In total, 90% of respondents said they consider their startup successful.
The start-up process doesn’t have to be resource-intensive either, with 55% of small business owners saying they spend less than 30 hours a week getting started. Another fine related to operational commitment to business, a number of entrepreneurs are planning to keep their business in operation, although they can also return to the labor market, work for another company while operating their own business.