Between customers shopping less or in different ways and government lockdowns, the global coronavirus pandemic has produced many problems for small business owners. Despite these setbacks, entrepreneurs are feeling optimistic about starting new businesses in a number of industries, according to a new survey from JustBusiness.
JustBusiness surveyed more than 400 business owners about their plans, or lack thereof, to start new businesses. Many entrepreneurs plan to move forward with their plans to launch. One in 5 respondents didn’t even have plans to launch a business but do now. A third of respondents said market changes inspired them to start businesses.
Over half of respondents will start a businesses for the first time. While 57.5% will launch their business on the side while working a full-time job. This side hustle approach to business creation is increasingly popular, even without pandemic conditions. Entrepreneurs want to test their ideas and prove they can generate income.
To finance these upstart businesses, 58.4% respondents said they’d use personal savings for funding. While 55% said they’d utilize business loans, and 19% responded they’d use angel or venture capital. Businesses commonly will use multiple funding sources for new ventures.
When asked for the rationale behind starting a new business amidst a pandemic, 51.2% said they identified a new business opportunity, While 32.9% said they identified a new opportunity relating to changes in the market due to COVID-19 and 26.8% said they were laid off from a job. Lay-offs can prompt entrepreneurs to evaluate their priorities They question whether they want to remain an employee or finally launch that business they’ve been dreaming of.
What does entrepreneurship look like during a global pandemic?
JustBusiness created an infographic to accompany the survey with essential statistics from surveyed entrepreneurs about their plans for the future. Their findings provide exciting insights into the economy’s future and the futures of the many entrepreneurs. They want to provide value across the country while earning a living for themselves and their families.
This infographic was created by JustBusiness.