The ongoing pandemic has prompted a growing number of U.S. citizens to take a chance and seek to start small businesses. The relatively fast increase of business creation is drawn out from a new report by Zapier.
The report finds that new business creation is over 50 percent higher than it was pre-pandemic. One aspect that is perhaps making the process of operating a business easier is by using automation tools. The usefulness of such tools was recorded by 57 percent of the survey respondents.
Many entrepreneurs undertake market research to assess if there is an opportunity to turn their idea into a successful business and then seek funding. While some startup folds, the more successful ones have been able to plug a market gap, or they have successfully clambered into an opening created by the COVID-19 pandemic.
Where startups wobble or fold, this is due to a complex series of factors relating to both situation, environment, and the agency of those at the top. A further reason relates to the market that the startup is entering in relation to entry costs and the time required to bring the new product or service into the market.
The area seeing the greatest amount of new business growth is within the southeast of the U.S., with Mississippi, Georgia, South Carolina, Louisiana, and Alabama leading the business creation charge.
The question that arises is how many of these businesses will survive? It is likely that the most successful small businesses will be those most able to rise beyond the conditions that the pandemic has presented.
The answer seems to be that many U.S. startups are faring well. This is borne out in the finding that 88 percent of entrepreneurs consider their company to be stable enough to last another year. It follows that nearly nine out of 10 respondents indicated that their business had achieved some staying power.
Of this proportion, a high number are planning to expand. Here, 68 percent of companies plan to hire more people in 2022. All told, 90 percent of those surveyed said they consider their startup to have been successful.
The startup operation process does not need to be resource hungry either, with 55 percent of small business owners saying they spend less than 30 hours a week on their startup. Another fining relating to the operational commitment to the businesses, a number of entrepreneurs plan to keep their business running although they may also return to the workforce, working for another company whilst they keep their own firm ticking along.
