We all can agree that the past year has been a tough one. As the world continues to deal with the pandemic, we’re seeing more and more people looking to start a business. This may seem counterintuitive, as the impact from COVID has created enormous disruption to our global economy. While we still have a long way until we fully recover economically, business founders are optimistic and looking to the future. They’re deciding that even with the current state of the world, the time to start that new business is now. And, with the immersion of so many new businesses we are also seeing a shift in consumer behavior.
How the Coronavirus Is Leading to More Small Business Creation?
To figure this out, Incfile conducted research, interviewed entrepreneurs and used our years of experience and insight to understand the dedication and drive small business owners have, and how they are navigating the crisis.
Understanding Pre-COVID: Small Business Success Before the Pandemic.
To understand how the pandemic has impacted small businesses it is necessary for us to understand how important small businesses are to the United States economy.
- 32 Million is the approximate number of small businesses in the U.S.
- 60 Million People that were employed by small businesses: 47% of the working population.
- 1.6 Million is the number of new jobs added by small businesses.
Sources: SBA Office of Advocacy, 2020 United States Small Business Profile
As you can see small businesses are a crucial part of our economy. Headed into the pandemic they were strong and resilient, and able to weather the challenges of the pandemic. Even though small businesses had a solid foundation coming into the pandemic, 8 in 10 businesses have felt the impacts of the pandemic, but fortunately more than two thirds of businesses were able to create new revenue streams.
Our infographic illustrates the current state of entrepreneurship, shifts in the industry, and in consumer behavior due to the COVID-19 pandemic.