While you might not think of a global pandemic as the perfect time to start a small business, the conditions created by COVID-19 have turned out to be just that. The U.S. Census Bureau reported that 4.3 million new business applications were filed in 2020, almost 1 million more than in
2019.[1]
Simply put, small businesses are booming, and they’re also being started by a more diverse group than in previous years. A study by Gusto found that today’s business owners are much more likely to be Black, Hispanic, Latino, or female, with 11% of new businesses in 2020 started by Black or African American entrepreneurs and 49% by women.[2]
But why are the current conditions perfect for startups?
Experts chalk the COVID-19 surge in entrepreneurialism up to several factors. According to economist Julia Pollak, economic recessions can create optimal conditions for starting businesses. Employees who were laid off or working from home in 2020 had more time to plan business ventures, and due to stimulus checks and loans, often had more financial capital to draw on.[3]
In addition to the circumstances created by the pandemic, advancements in technology have also contributed to the increase in startups. Online platforms are making it easier than ever to start a small business centered on selling products via the internet,[4] and social media apps like Instagram are making it simpler for entrepreneurs to advertise their offerings digitally, reaching larger numbers of potential customers.
Although online “non-store retailers” are growing in popularity, physical businesses with storefronts are booming too. In particular, small business owners are setting their sights on startups in states like Florida, Georgia, and Texas, where low rents help business owners keep costs down and profits up.[5]
Are you interested in starting a business or increasing the profitability of your current venture?
At Visa Business Plans, we offer business coaching that helps entrepreneurs grow their companies and reach short- and long-term goals. Visa Business Plans also provides specialized consulting for entrepreneurs within the food service and restaurant industry. Contact us today to schedule a consultation and get your small business off to a great start!
Visa Business Plans is led by Marco Scanu, a certified coach from the University of Miami with a globally-based practice coaching Fortune 1000 company executives, entrepreneurs, as well as professionals in 4 different continents. Mr. Scanu advises clients on turnaround strategies and crisis management.
Mr. Scanu received a bachelor’s degree in Business Administration (Cum Laude) from the University of Florida and an MBA in Management from Bocconi University in Milan, Italy. Mr. Scanu was also a Visiting Scholar at Michigan State University under the prestigious H. Humphrey Fellowship (Fulbright program) with a focus on Entrepreneurship, Venture Capital and high-growth enterprises.
At present, Mr. Scanu is the managing partner and CEO at Visa Business Plans, a Miami-based boutique consulting firm providing attorneys and investors with business planning services in the areas of U.S. and Canadian immigration and SBA loans.
[1] United States Census Bureau “Business Formation Statistics.” | July 15, 2021
[2] Gusto “New Business Creation During COVID-19: A Survey of Pandemic Entrepreneurs.” | May 13, 2021 | Luke Pardue
[3] NPR “The COVID Business Boom.” | July 15, 2021 | Brittany Cronin and Stacey Vanek Smith
[4] Yahoo! “‘Where Were We the Whole Time?’ Entrepreneurs Bloom as COVID-19 Fuels Start-up Surge.” | July 31, 2021 | Dani Romero
[5] Axios “The Small Business Boom.” | June 23, 2021 | Felix Salmon
