Is Now a Good Time to Start a Business?

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Recent data published by the Opens a new windowUS Census Bureau revealed a surprising surge in new business applications in late 2020—nearly double that of the past decade. This certainly comes as a surprise in the wake of the COVID-19 pandemic when, for many business owners, customers have been lost, jobs have been cut, and doors have been closed. With so much industry lost in such a short period of time, one would expect entrepreneurialism to be at a standstill.

New Niches to Fill

So, what gives? In truth, there are many reasons for a business boom. Typically, booms occur at the juncture of burgeoning needs and the right technology to deliver solutions efficiently. The current surge in new businesses certainly fits the mold. For starters, our socially-distant circumstances have prompted a new set of demands for business and social interaction, giving rise to manufacturing and service niches ready to be filled. It goes a bit further than homemade masks and sanitizers too. New medical and logistics-centered apps, web-friendly commerce, and home-based small businesses of all sorts have stepped forward to meet the new needs of these unprecedented times. In essence, many believe we are living through a period of “creative destruction” as described by the famous Harvard University economist Joseph Schumpeter in which a mutation of industry maims the old while birthing the new.

Startups Strive and Thrive

Small businesses and startups are often best poised to adapt to and innovate for new market needs because they tend to be nimble and better able to move quickly. Since quick movement has long been a virtue in startup culture (even pre-pandemic), these companies have historically been able to produce product swiftly and safely, against the odds.

In addition to market advantages, Opens a new windowForbes reminds us that entrepreneurs have a “human advantage,” meaning their tie to the turbulence of the human experience gives them an edge, even in a pandemic. As such, many “pandemic entrepreneurs” see these newfound circumstances as the disruption they need to start doing something new. People like Opens a new windowDerwood Selby, a hotel food supervisor turned produce stall owner, described his layoff as his “big break”—a time when he could hang up his burn out and pursue his passion project.

To Start or Not to Start

All this points to the idea that starting a business during this time, though seemingly counterintuitive, may not be such a bad idea after all. If you are thinking of finally starting that business you always wanted or if you are just realizing you have an idea you want to pursue, weigh the risks, be mindful of the changing environment, and consider if there’s truly “no time like the present.”

And, if you need help starting your business, Tech CU has the tools and support to help members take their first steps and more. If you’d like to learn more, visit our website and see what Tech CU can do for you.

Tech CU strives to help you reach your financial goals—personal and professional. We’re here for you!