The small business boom ain’t over yet

Small business applications are down from the pandemic peak, but still way above pre-pandemic levels.

During the pandemic, a combination of stimulus checks and free time led many to tap into their inner entrepreneur. Case in point:

The small business boom ain’t over yet
  • Google searches for “how to start a small business” were up 124% in the first six months of the pandemic, per Axios.
  • There were 5.4m new business applications in 2021, up 53% from 2019.

While application volume has tapered off from the pandemic peak, data from FRED reveals we’re still in the midst of a boom.

But it’s not exactly easy out there

A survey from Kabbage found 75% of small business owners said inflation had cut into profits.

  • Further, rising rates are causing smaller firms to get squeezed out of storage space.

On the bright side, Bank of America found 77% of entrepreneurs believe their business is equipped to survive a recession, meaning many likely expect to keep their startup dreams alive for the long haul.

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