Highest level since 1999, according to study
More Americans are now opening and running their own businesses than at any point in the last 24 years, according to a new report. The Global Entrepreneurship Monitor released its study on September 14, wherein it found that nearly 1 in 5 adults have, in the last three-and-a-half years, either founded their own business or in the process thereof.
These are the highest levels since the study began in 1999.
The U.S. has the 3rd highest rate of new entrepreneurs, coming in behind the UAE and Saudi Arabia but ahead of both Canada and the UK.
This upward trend confirms what some market analysts have been noticing for the last two years, that the onset of the covid pandemic forced many people to start looking at becoming self-employed, with so many job losses during that period effectively pushing people to branch out for themselves.
This is exemplified by figures showing applications to start new businesses spiked in July 2020, when around 550,000 applications were filed, according to census data. Government financial support during this period evidently spurred some people on to establishing their own business by granting them an unexpected financial cushion.
New business applications have remained steady ever since, but business closures have also reached new highs at 5.9% compared to 2.9% in pre-covid times. Getting started is easy but maintaining that business in uncertain economic times is another thing entirely.
Interestingly, the study found that entrepreneurship is highest among African-Americans and Hispanics – 35% and 27% respectively – compared to 15% of Caucasians.
The new report also showed that Americans aged 18-34 were much more likely to start their own businesses compared to those of 35-64 years of age. Men are still slightly ahead of women in starting new businesses, but that gap has been narrowing in recent years, with the study showing a move away from finance and real estate to manufacturing and logistical professions.
