America’s Entrepreneurial Spirit During COVID-19

By Najma Hashemi --
Monday, 22 Feb, 2021

A recent report by U.S. Census Bureau indicates that in spite of the risks of beginning a new business during the global Covid- 19 pandemic, the courage of becoming an entrepreneur is still alive and well in the United States of America.

The total figure of new business applications was 492,133 in January 2021 which was an increase of over 73% year-over-year (YoY).

The South region placed at the highest growth rate with 84% and with more than 220,000 new business applications in the region in January of current year; receiving more than 6,000 new applications, the state of Mississippi had the highest percent increase at 164%.

Especially, the new business applications have raised in the last month or so, bouncing back from a down within July to December 2020.

The growth rate from December 2020 to January 2021 reached at 42.6%, with the greatest change happening in the Midwest, where the rate of applications has got increased to 48.6%.

Before the pandemic, new business startups were actually falling down; but in times of pandemic, the opportunity has been created out of crisis; people have become wildly innovative owing to the struggling with hardships; they were forced to think creatively due to job or income loss. In economists, such a condition wherein new innovation pops up because of the failure of particular industries or businesses, is called 'creative destruction'.

The sudden growth of remote and digital services over traditional concrete stores is a perfect example for creative destruction; indeed, retail services with over 101,000 applications was the industry with the highest number of new business applications, mostly online, in January 2021.

Due to the increasing number of business applications, more job opportunities could potentially be created in the U.S.; and competition will likely increase as well. While starting a business during the pandemic is risky, it could have great outcome for the individuals involved and the overall economy. Probably, for entrepreneurs with ideas of digital businesses, there has never been a better time to start a business.

As per the U.S. Chamber of Commerce recommendation, the specific business ideas that are ‘pandemic-friendly’, the most appropriate ones out of all virtually-based ideas includes:

Digital marketing
App development
Fitness and wellness services
Box subscription services

America’s Entrepreneurial Spirit During COVID-19. A recent report by U.S. Census Bureau indicates that in spite of the risks of beginning a new business during the global Covid- 19 pandemic, the courage of becoming an entrepreneur is still alive and well in the United States of America.

The total figure of new business applications was 492,133 in January 2021 which was an increase of over 73% year-over-year (YoY).

The South region placed at the highest growth rate with 84% and with more than 220,000 new business applications in the region in January of current year; receiving more than 6,000 new applications, the state of Mississippi had the highest percent increase at 164%.

Especially, the new business applications have raised in the last month or so, bouncing back from a down within July to December 2020.

The growth rate from December 2020 to January 2021 reached at 42.6%, with the greatest change happening in the Midwest, where the rate of applications has got increased to 48.6%.

Before the pandemic, new business startups were actually falling down; but in times of pandemic, the opportunity has been created out of crisis; people have become wildly innovative owing to the struggling with hardships; they were forced to think creatively due to job or income loss. In economists, such a condition wherein new innovation pops up because of the failure of particular industries or businesses, is called 'creative destruction'.

The sudden growth of remote and digital services over traditional concrete stores is a perfect example for creative destruction; indeed, retail services with over 101,000 applications was the industry with the highest number of new business applications, mostly online, in January 2021.

Due to the increasing number of business applications, more job opportunities could potentially be created in the U.S.; and competition will likely increase as well. While starting a business during the pandemic is risky, it could have great outcome for the individuals involved and the overall economy. Probably, for entrepreneurs with ideas of digital businesses, there has never been a better time to start a business.

As per the U.S. Chamber of Commerce recommendation, the specific business ideas that are ‘pandemic-friendly’, the most appropriate ones out of all virtually-based ideas includes:

<ul>
 <li>Digital marketing</li>
 <li>App development</li>
 <li>Fitness and wellness services</li>
 <li>Box subscription services</li>
</ul>