From Hampton Roads Small Business Development Center By Mike Austin
The current economic environment has been deemed to be an excellent time to start a new business. Statistics show that business license applications in 2021 were more than 50% higher than in 2019. In addition, there are plentiful sources of lending and equity capital for businesses that were absent prior to the pandemic.
There are other somewhat unique factors present in the current economy that enhance new businesses, including:
- A safety net – this means that if the venture fails (which is likely statistically) there are numerous opportunities for employment, especially for college-educated talent
- Work-from-anywhere – this means that hiring good talent is not geographically-limited
- Costs are sinking – many workers don’t expect companies to provide office space, which means that upfront overhead costs are lower than in the past. In addition, technology costs continue to decline as platforms become more robust
- Virtual help – almost all support services are available online, including HR, payroll, supplies, etc.
- Win by losing – in the event your venture fails, prospective employers frequently value the experience gained by the process
- All paradigms are shifting – the pace of reinventing businesses has accelerated due to the pandemic and technology and new ways to build market share are changing almost daily
It is likely that these factors will continue in the months and years ahead. One challenge that remains for budding business owners is to develop a nimble, innovative niche business that can become and remain profitable despite inflation, employee shortages, supply chain issues, war between Russia and Ukraine, and the ever-present specter of another pandemic.