It’s no surprise that a workforce hungry for change, overworked and underpaid were looking for something different when the pandemic first hit our shores. While it may have caused millions of employees to rather work from home, or even worse, lose their jobs temporarily or permanently, Americans of all ages want to start a business.
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Even after two years since the advent of the pandemic, employees are leaving the workforce behind en masse. According to the U.S. Census Bureau, more than 5.3 million Employee Identification Numbers (EINs) were registered in 2021. This is more than the 4.3 million recorded in 2020, with current predictions standing at 5.6 million for 2022.
As millions of Americans were faced with a tremendous challenge, either returning to work or finally pursuing their entrepreneurial ventures, a majority chose the latter thereof.
With 2022 already in full swing, slow economic recovery, and financial implications not affiliated with the matter shouldn’t lessen your chances to start a small business or perhaps invest in an upcoming startup.
Small Businesses On the Rise
A recent Quickbooks survey which polled more than 8,000 American employees concluded that around 57% of surveyed individuals will be looking to start a business in the coming year. From this, around 20% will take the leap in 2022 to start their small business.
The same survey concluded the amount of new upcoming businesses in 2022 could hover close to 17 million by the end of the year.
But even with little money, and minimum startup cash flow, somehow millions of entrepreneurs and young startup owners have found a way to make their dreams a reality. Of course we can thank the ongoing government support, and investment guidance that has enabled so many previous full-time employees to become entrepreneurs within the last few years.
Employees become Employers
The pandemic left a psychological tone to many Americans who have for years wanted to start their own business. That tone has now translated into many full-time employees leaving their corporate roles behind, as a way to pursue entrepreneurial endeavors.
For decades we’ve seen businesses as problem solvers, and at this very moment, there is a cohort of problems that are left to be solved by American entrepreneurs and small business owners. This was the sentiment of vice president of small business policy at the US Chamber of Commerce, Thomas Sullivan.
So what’s pushing people to start their own business?
A lot of contributing factors have become strong evidence of why so many American employees are leaving their permanent jobs.
Some cite that:
- Low job satisfaction
- Toxic working environment
- Financial reason
- Work-life balance
- Working from home or remotely
- Flexibility, and
- Being your boss is one of the main reasons behind starting a business.
With government stimulus, additional savings, and ample time at home, so many workers finally realized that starting a business, even if it means they do everything themselves will help put a blow to their financial struggles.
Feeding your Thirst for Entrepreneurialism
For years we had the idea of starting a business but never knew what. At the same time, while we were spending an extended amount of time at home, we soon realized that we can actually turn our hobbies into a business idea, and then a plan, and then a reality.
From baking, drawing, writing, building, cutting, and nearly everything you could imagine, Americans found that a simple hobby can easily become a lucrative business idea.
There are enough of these stories covered on major media channels. Working part-time on your side hustle could mean you will need to juggle a lot more balls than what you’re used to. It also means you will sooner or later need to choose whether or not you’re willing to pursue this “hobby” no more full time and start making a business out of it.
Anna Hay mentioned in a USA Today interview that small business owners should try and be as authentic and original as possible. According to Hay, she mentions that entrepreneurs should remain focused, and be open to changing their direction if needed. Network with small business owners, and accustom yourself to your local small business development center (SBDC).
There is truly no better time than now to find solutions to basic issues we’ve been staring right in the face. Entrepreneurs of any caliber are making waves as they turn simple ideas into profitable businesses.
The Pandemic Boost
The same Quickbooks survey cited that more than 83% of people who have thought of starting a business did so because of COVID.
New opportunities were suddenly all around us, and some took leaps and bounds to make them a reality.
From the slums of the pandemic soon rose new ways in which people could be innovative and creative. It meant that various industries were now also changing their ways to adapt to the environment of new entrepreneurs entering the scene.
Industries such as online investing, entertainment, and manufacturing, among others are all cited by a recent Forbes article as some of the industries that will be the most important for entrepreneurs in the next year.
If Not Now Then When?
So many of us have been dreaming of owning a small business or perhaps just working for ourselves. One lesson we can all take away from the last two years of COVID is that ‘if not now, then when?’
Walid Al-Hajj of Digital Ceutical says “When picking your business niche, consider the various factors that come into play, as this will become your life in a matter of months. You will need to innovate in this space and be as creative and original as possible. Make time to read, and write about your niche, talk to people, and get to know the ins and outs thereof – it becomes your world.”
There are of course various implications we need to factor into our entrepreneurial dreams. From startup funding, support, motivation, time, and additional resources; these are just a small handful of the considerations that come with starting a business.
Spending too much time inquiring about small issues, and problems will never help you become your boss. Sitting around, and pondering over small issues that won’t make a big impact right now is a hurdle in your road to success.
Starting a small business may have been on the minds of many, but recent developments have left many of us at a crossroads – choosing between our jobs, and our fulfillment. The global pandemic has left many with the feeling of pursuit, and innovation, allowing them to cross new boundaries that they have before dreamt of.
Now entrepreneurship is a reality and a much more attainable one at that. Starting a business is a promising opportunity that puts us in control of our lives, but more so, gives us a sense of achievement.
Yet, we shouldn’t ignore the consequences that come when the business fails, or the financial implications you will need to carry with you. The world of business hasn’t changed much, but our desire to discover our entrepreneurialism has.