The pandemic is turning millions of people into entrepreneurs – is it the right financial decision for you?

nensuria / iStock.com

There have been a record number of new businesses since the start of the pandemic. According to data from the US Census Bureau, there have been 4.3 million new business applications in 2020 and 3.8 million so far this year.

Find Out: What Do Small Businesses Really Mean To The U.S. Economy?
Explore: 22 companies hiring at $ 15 an hour

This trend is not a bubble, however; it’s just a reflection of the times, Business Insider noted. Millions of people made redundant or who quit their unsatisfying jobs are now becoming full-time solopreneurs, freelancers or scammers and take charge of their careers and earning potential. “Entrepreneurship goes in waves,” Jacqueline Kirtley, professor of management at Wharton, told Business Insider. “There was some concern that it had gone down in the first decade of the millennium, but it was flatter than going down.”

According to ZipRecruiter, annual salaries for self-employed workers vary widely, ranging from $ 273,000 to $ 20,000. However, average salaries generally range between $ 41,000 and $ 89,000.

Conversely: How the pandemic amplified the challenges of women entrepreneurs

Technology and online resources have made it possible to start a business from almost anywhere. Data from the Federal Reserve Bank of St. Louis shows the number of self-employed workers peaked in eight years in July.

Additionally, Business Insider found that 35% of new businesses registered by the Census Bureau in 2020 have a high propensity or high likelihood of employing other people and a 50% chance of surviving their first five years in business. .

From New York to California: Spotlight on Beloved Small Businesses in the 50 States
Attention Small Business Owners: Chase Just Launched the First World of Hyatt Business Credit Card

Cynthia Franklin, director of entrepreneurship for WR Berkley Innovation Labs at New York University, told Business Insider US that lasting business success depends on finding the right market. “It always requires that you have a good idea, a good deal, and something that you can offer in a different and special way. “

More from GOBankingTaux

Last updated: October 14, 2021

This article originally appeared on GOBankingRates.com: Pandemic Turns Millions Of People Into Entrepreneurs – Is It The Right Financial Decision For You?

About Arla Lacy

Check Also

Beijing city center set to be completed by 2035

The water quality of the Tongzhou section of the Beijing-Hangzhou Grand Canal has improved. The …