Would you believe?


There has been so much talk about small businesses dying due to COVID-19 that few people have noticed a surprising occurrence. The number of new small businesses started since the beginning of the pandemic has skyrocketed.[1]

 

During the Great Recession, business startups sagged. This rise in entrepreneurial endeavor is happening even as many big companies continue to lay off or furlough employees. Some of these startups are hiring.

 

One other strange thing is this: it is an American phenomenon. Nowhere else in the developed world is seeing this trend.

 

 

https://www.economist.com/img/b/608/662/90/sites/default/files/images/print-edition/20201010_USC033.png

 

For me, this says something very exciting about the future of America. As we go through a time of division in the country, it seems like capitalism is not dead and gone. It is alive and well and prospering!

 

On my radio show, I interview the CEO of a private company almost every week, and some of these entrepreneurs are not just experts who have made incremental improvements. They are visionaries. Not all, but some, are looking to massive markets where they can improve the quality of life.

 

Many are millennials, about which so much is written. Although many in the older generation say Millennials do not have a work ethic, in fact, many do. And from my experience many want to make the world a better place. This formation of business seems to indicate they are, in fact, succeeding.

 

These young entrepreneurs see how they can create a business that will dramatically improve the way we doing something. To make it worthwhile for the business, they want to find a huge market. Some have failed in previous ventures, but adhere to the adage of “failing forward”. They learn from their previous ventures and go on to bigger and better projects.

 

When I look at how the world is changing and how the quality of life is improving and the pace at which it is happening, I am thrilled. And thrilled really is the right word.

 

Focusing on the businesses that are failing is looking at the glass half-empty, to use the old cliché. Think of the business startups as the glass half full and getting even fuller.

 

[1] “The number of new businesses in America is booming,” The Economist, October 10, 2020, https://www.economist.com/united-states/2020/10/10/the-number-of-new-businesses-in-america-is-booming.

 

Disclosure: This article is not to be taken as investment advice and should not be relied on for such advice or as a substitute for consultation with professional accounting, tax, legal, insurance, or financial professional. The observations made in external articles are independent of Wimple and should not be read as financial recommendations.

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