Why has entrepreneurship seen a boom since COVID-19?

 Why has entrepreneurship seen a boom since COVID-19?

Data collected from Forbes.com shows that in 2020, developed countries such as the USA, UK, and Japan saw significant increases in the number of new businesses registered. The USA alone witnessed a 90% increase in new start-ups compared to 2019 which was an all time high for the country. What has caused this sudden spark in the population to take risks and start new business ventures and how has the pandemic played a role? 

I personally believe the excessive leisure time the pandemic offered might have played a crucial role in supporting this data. Since the whole world was forced into a lockdown, people remained comfortable in their homes and were provided with the opportunity to endeavour into new skills or might have even become proficient in one thing or the other, and this might have led individuals into converting these new found skills into a possible business venture.

Graph representing number of new businesses registered in the USA




I would also like to highlight the significant rise in the digital sector industry and how numerous entrepreneurs have capitalized on this trend by establishing businesses that cater to consumers' needs with the convenience of digital services.  

Orange health was one such Indian company that was set up in 2020 and works as an on-demand diagnostic lab. This meant people could gain access to medical professionals right at their homes. During the pandemic period, majority of the population were conducting frequent tests to ensure they were out of harms way but they were also not ready to step out of their homes, but this brilliant idea solved both these problems. 

This leads to my last point of there being an increase in consumer demand for various services and people stepped up and started their own businesses to try and address such problems in order to satisfy consumer demands.


Unemployment was also on the rise during the challenging years. People found it hard to find jobs and even stay in existing ones which led to some of these millions exploring opportunities to become self employed and as mentioned earlier the excessive leisure time and gave them the chance to plan out, and execute their new business ventures.

In conclusion we can say that the rise in entrepreneurship during the time of the pandemic was fuelled by various reasons such as the motivation to become self employed and many more.

-SUJAY RAJU 







Comments

Post a Comment

Popular posts from this blog

What is the Gig economy?

Image
 In todays age, where technology has been made the first priority in many peoples lives, the gig economy has simultaneously experienced a rise in popularity.  First of all what is the gig economy? It is a labour market charecterised by the prevalance of short term contracts of freelance workers who dont engage in permenant jobs. These 'gig workers' typically work on a project or task basis, offering their services or skills to clients or companies for a specific duration. Personally, I have used multiple freelancing platforms such as Fiverr and 99Designs for short tasks and a cheap price. The availability of such workers who uptake and complete your task for a short period of time, provides significant satisfaction to customers or clients who might not be interested or have the funds to hire full time workers. Here listed out are some other primary reasons why the gig economy has seen outstanding growth. Digita platforms - As i mentioned at the begining, the internet and techno
Read more

My story starting my own business.

  What does it take to transform a simple idea into a thriving business? As a highschool senior, I decided to go on a journey to find out. My idea was simple: contact local business owners and present them with my intention of making them their own specialized business website and then creating one with the help of AI tools and a few customisations in exchange for a small amount of money. It sounds straightforward, but the lessons I would learn throughout this process were far from being simple. Filled with passion, excitement, and the thought of becoming rich at a young age, I began calling every single bookstore, hairdresser, and event planner in my city. After getting rejected by the first few of my potential clients I failed to get demotivated as my drive for success could not be constrained by a few failures. I tried again and again and again…., until there was no one else to call. All I was met with was a ‘no thank you’ or a ‘i'll get back to you’. Frustrated, I decided that
Read more

Inflation and its effects on people.

  What impact does inflation have on people's lives? Inflation, the sustained and extensive rise in the prices of commodities and services within an economy over a period of time, arises from a disjunction between excessive demand and constrained supply. It impacts the lives of people and the economies they reside in, in three profound ways : reducing people’s purchasing power, fiscal drag, and the reduction in unemployment. Analysing the potent influence of historical events such as the 1920s stock market chaos in Germany and the hyperinflation faced by Venezuela offers poignant illustrations of inflation’s far-reaching ramifications, significant in highlighting its intricate effects on individuals. Inflation’s foremost impact lies in the pervasive reduction of purchasing power. As inflation intensifies, the currency’s precipitous devaluation ensues, diminishing its capacity to acquire commodities. This erosion, where the nominal value of money diverges from its market value, lead
Read more