AmiSights 2/8: Growth in Entrepreneurs, a Lasting Effect of the Pandemic
The surge in entrepreneurs spurred by the pandemic's uncertainty and job slashing isn't going away soon. In 2022, Americans filed more than 5 million new business applications, marking the second-highest year (5.4 million in 2021). That's up from 3.5 million in the pre-pandemic days of 2019.
What’s more, Business Insider reports many of the streaming entertainment, at-home fitness, food delivery, and e-commerce companies who hired in mass during the at-home quarantines are now realizing they may have overshot their predictions and are now firing in mass.
So, while the pandemic has waned, job uncertainty continues, making self-employment an attractive option despite inflation, supply chain disruptions, and recession fears.
The risk of going on your own remains high, however, with roughly one in every seven businesses less than five years old failing in "good years," according to the Economic Innovation Group (EIG), and one in five in "bad years."
Like everything else, you need to consider your situation before you jump into the world of entrepreneurism.