The growth of new business ventures suggests that the epidemic has created a landscape where entrepreneurs and startups can thrive and new innovations can emerge.
“It simply came to our notice then. “Since the epidemic, we’ve seen huge new business growth,” said Julia Polak, chief economist at ZipRecruiter. “There are more opportunities there.”
Government figures show a record difference in the number of “unemployed” jobs created, from 11 million to 7.4 million. Whether this is an epic headache for managers and executives, economists and labor market experts say there is a significant result.
The Census Bureau’s Business Statistics Collection shows an increase in the number of people filing for a new business. From January to November 2021, only 5 million new business applications were submitted, which is a 55% increase compared to the same period in 2019. Moreover, a significant number of them are what the Census Bureau calls “high-incidence applications”, which means that they are likely to create new jobs.
“There are some big topics,” said Dave Carvajal, CEO of Dave Partners, a recruiting firm focused on the tech industry. “There is a lot of money going to venture-sponsored startups,” he said. Much of this is due to the growth of digital indigenous consumers and workers, and the epidemic did the rest.
“The way people want to operate, the mindset, is changing, the new technology companies that are developing these technologies, the systems, are contributing to that,” Carvajal said. “The mentality of these people is completely different from previous generations. “What this epidemic did was accelerate these patterns of behavior. It was quite a catalyst.”
You realize that you work overtime every week. If you do, you can do it to build your own company.
Frank Lamona, a SCORE Certified Mentor program that offers executive mentoring to entrepreneurs, says the epidemic provides an unexpected “window of opportunity” for people who are hungry to start a business. “What it gave them was time to re-evaluate the future of work in their lives,” he said, adding that SCORE, two of the most popular seminars on the basics of business and social media marketing, respectively.
“I loved teaching, but… it’s time for me to actually leave,” said Daniel Neal, a Baltimore-based sophomore who worked with SCORE mentors to improve his business skills. He resigned this May, when the school year ended, to turn it into a side project that helped small businesses navigate social media into a full-time enterprise.
“The market is there. “Small business owners want to make a name for themselves there, but they do not understand the world of social media,” said Neil, adding that he hopes to expand enough to get a job next year. “In the long run, I would like to hire people. I want my own agency with other employees.”
The turning point for some former worker bees was that their work responsibilities multiplied as a result of the epidemic. The pressure of simultaneous manipulation of office and online software when his Florida-based employer reopened made Chelsea Kid realize.
“I’m back in the office, he’ve been supporting a lot of virtual initiatives. “It was quite a difficult two-pronged approach to work,” he said. “You understand that you work overtime every week. If you do, you can do it to start your own company. ”
Kidd, who was also a SCORE mentee, resigned in late 2020. In 2021, he moved from Montana, South Florida, to launch SiteWell Solutions, a health consulting business focused on remote employees.
The ability to work from home expands the workforce in many ways.
“I have been in corporate health for about 15 years [and] “I was just ready to complete the flight,” he said.
“The other thing I think is a constant change is the ability to work from home,” Lamonako said. “It expands the workforce in many ways.”
This distinction of talent demand associated with a particular location is not only good for entrepreneurs. It is also promising from a macroeconomic point of view. Researchers say that one of the factors contributing to the smooth, uneven recovery after the Great Depression was the lack of new business development.
The current growth is also a huge benefit to many employees who took advantage of the disaster caused by the epidemic to take the next step in their careers.
“I think what has changed is a post-epidemic, only this whole concept of distance has opened up a world of new opportunities,” said Anand Balasubramanyan, who quit his job where he worked for six years, as greater acceptance of distance work gave him more opportunities. : Ames, Iowa, where he lives.
Balasubramanyan said that in his previous job he had “good relations” with his colleagues և management, but recently he started working in a startup based in New York, where there are about two dozen scattered workers.
“In terms of my career, where I wanted to go, my personal journey is that I wanted the startup experience from the first floor,” he said. “I want to learn how to build a marketing team. I’m going to study with the right attitude. “
Carvajal said fierce competition for talent today gives employees the confidence they need to go it alone or decide to play at high stakes. “In a recession, people tend to stay in their jobs longer, they will tolerate underemployment,” he said. “In the economy we live in today, people feel so secure that they are really looking for bigger jobs, bigger growth, bigger opportunities.”