The Week (US)
What’s the outlook for startups?
Surprisingly good. Obviously, many businesses suffered during the pandemic. But the past months have seen an unexpected flowering of business creation. New business applications are being filed at a rate 56 percent higher than in the year before the pandemic. People who were forced out on their own by the pandemic found that they liked working for themselves. And the movement online of much of our lives created new openings; online retail is the biggest single category of new businesses. The surge in startups stands in stark contrast to the 2008 economic crisis, when funding was scarce and new companies withered. Some of these ventures are one-person shops. But startups in the narrower category of new businesses that are likely to hire also rose, ending 2020 roughly 15 percent above their 2019 number. It’s clear that many entrepreneurs are betting we are in a rapid economic recovery.