Times were hard during the pandemic. Not to say that they still aren’t, because we all know that they are. This was a phenomenon that most of us hadn’t seen in our lifetime, and it was terrifying. The looming uncertainty that arose from that period of time inspired a lot of people to start side hustles and possibly a small business. Stimulus checks were also coming in, and frankly, many of us had a lot of free time on our hands.
There’s a myth floating around that small businesses started on a whim are doomed to fail. Studies that have been conducted over the past couple of years prove otherwise, though. During the first six months of the pandemic, Google searches for “how to start a small business” were up by 124%. (Axios) There were also about 5.4 million new business applications filed in 2021, a 53% increase from 2019.
Application volume has decreased since then, but research shows that we’re still in the middle of a boom! (Kabbage) conducted a survey this year that said 75% of small business owners reported that rising costs have cut into their profits. Note that inflation has also caused smaller firms to cut corners with storage space.
There is a silver lining, though. (Bank of America) found that around 77% of entrepreneurs in the US believe their business will survive the recession. That’s fantastic news, meaning many of them expect to see their hustles and small businesses make it for the long haul.
The past few years have been stressful for entrepreneurs, and it hasn’t gotten easier. There are a lot of financial setbacks that many of us are struggling with, and it seems like small business owners get hit the hardest. These reports are a glimmer of hope for those that are worried about their dream failing, or coming to a halt due to rising costs. Keep on keeping on!