The pandemic motivates 96% of new entrepreneurs in 2020
Ninety-six percent of new entrepreneurs say the pandemic motivates them or gives them the motivation they need to start their own businesses. This positive statistic comes from Azlo, a banking platform for small business owners, freelancers and entrepreneurs.
In mid-March 2020, Azlo saw a slight increase in account openings. Wanting to understand the reasons for the boom in business, Azlo conducted an investigation. ‘The economics of COVIDhe report surveyed 1,000 of Azlo’s new customers across the United States.
The unexpected impact of the pandemic
Since the impact of the Covid-19 pandemic began to intensify in March, businesses have been plagued with negativity. Azlo’s research shows the unexpected impact of the pandemic. It shows how the health crisis gave many entrepreneurs the boost they needed to start their business.
More time to start a business during the pandemic
Research has found encouraging growth in the “COVID economy” with the pandemic giving entrepreneurs the opportunity to start a business.
50% of survey participants said they had more time to start their business during the health crisis. This is because other activities have been suspended. 40% of those polled said the pandemic gave them the time they needed to start a business.
Is the “COVID Economy” Here to Stay?
Rather than being an isolated trend, the study found that the renewed sense of confidence in the “COVID economy” is here to stay. This could encourage entrepreneurs who may be hesitant to start a business. Knowing that the pandemic has acted as a motivator for others, could inspire indecision in entrepreneurs to take action.
As Jonnita Dockens of Confidante Consulting commented in Azlo’s report “The COVID Economy”: “COVID really motivated me to do something I was thinking about before COVID. It was almost as if COVID was the sign telling me, ‘You have to do this because everything is going digital. “
Reasons COVID Drove Entrepreneurs to Start a Business
The survey asked new business owners how the outbreak motivated them to start their own businesses.
63% said they wanted to work for themselves. More than half (58%) said they had a desire to pursue something they were passionate about. 46% of those surveyed said they thought their business idea was solid.
Money was also a key motivator in the wave of new businesses emerging during the pandemic. 32% of new small business owners said they wanted to make more money than they thought they could while working. 30% of participants say they have started a parallel business to supplement their employment income.
What’s in the pipeline for companies born from COVID-19?
The harvest of business owners born from COVID-19 is serious and long-term, research has found.
37% of new business owners surveyed said they felt the pandemic created a marketing opportunity. Almost 40% of founders say they either already have employees or intend to hire in the near future.
Almost all (96%) small business owners say they intend to keep their business in business, even if the economy improves.
Azlo’s research proves that small businesses continue to be the backbone of the U.S. economy. Even in times of crisis, with the right attitude and the right focus, small businesses can start a new business and thrive.