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