The pandemic has impacted companies and employees across every sector, sometimes in different ways according to the business interest of the company. There have also been changes to the economy in terms of a rise in small businesses.
With an increased number of business closures and layoffs came more time spent at home – which led to many in the U.S., and other territories, creating small businesses at a relatively fast pace.
But what are the factors behind this startup boom? In terms of the human element, it could be asked what is the availability of extra time more motivating than the need to make money?
According to a new data report by Zapier, the top five reasons why COVID pushed entrepreneurs to start a new business include time-based elements. In fact, the number one reason, at 77 percent of survey respondents, was that those establishing a new venture said they did so because they had extra time to plan during the pandemic.
The second highest motivator mentioned, by 69 percent of the people polled, was altruistic. This was a desire to contribute to their community and society.
Bubbling below this was the more standard reason for seeking to open a business: opportunism. With this, 65 percent of business leaders said they started their new firm in order to take advantage of business opportunities presented by the pandemic.
Not only did the disruption from the pandemic create new opportunities, for a sizeable number of people it provided a more straightforward process. With this area, 60 percent stated it would be easier to start up a new company during the pandemic.
The pandemic appears to have created a set of circumstances that:
- Increased the availability of key inputs to new business creation.
- Lowered the potential opportunity cost for starting a new business.
The above reasons were cited by entrepreneurs as areas to take advantage of during the duration of the pandemic..
A relatively high number of people said that their interests were purely financial. Here 57 percent indicated they were driven to launch their business as a result of a need to make more money.
As well as the personal motivations captured, the research also looked at technological changes/ Many survey respondents also reported that automation tools made it easier to start a business and had a positive impact on business efficiency and effectiveness.