Entrepreneurs Find Silver Lining in Covid-19
A new report titled How 2020 Has Influenced A New Class of 'Pandemic Founders', offers a deep-dive analysis of who's starting a business in 2020, and how they've been impacted by Covid-19.
The study, by JustBusiness, provides insight into the newest group of entrepreneurs, “Pandemic Founders”, as they look to start their own businesses. Key insights include:
- The pandemic was a catalyst for many entrepreneurs. One in five, or 20% of respondents said that they didn't have plans to start a business before the pandemic—but they do now.
- Many of these folks are tackling their passion after losing a job: More than a quarter, or 26%, were laid off, and are now starting up on their own.
- More than half are first-timers. About 51% of survey respondents said that this would be their first time starting a business.
- Fully virtual and hybrid models are most popular. Approximately 29% of businesses launching will be entirely virtual, while an additional 32% will be both physical and online.
The full report examines additional factors, such as the most popular industries, most common types of financing, and business owners' hiring plans.
"This is a fascinating group of founders," said Eric Goldschein, Partnerships Editor at JustBusiness, and lead researcher on the report. "We were initially surprised that small business formation has increased so significantly this year. But we've learned that these entrepreneurs are seizing the silver lining, perhaps pursuing their passion after being laid off, or uncovering a new opportunity due to the pandemic. I'm proud to report that many in this new class of business owners are meeting the hardships of 2020 with quintessential American ingenuity and innovation."
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