How to unearth the startup talent in middle America
3 Sep 2021
Throughout the pandemic consumers were desperately searching for new market solutions—from online tutors for their children, to in-home fitness solutions, restaurant delivery services and eco-friendly cleaning products. Entrepreneurs around the U.S.—who had the opportunities and resources to do so—sprung to life in meeting the demands of consumers in this ‘new world’. While many entrepreneurs were forced to rethink their business models during a time of economic uncertainty, the monthly rate of new entrepreneurship was significantly higher (0.38%) in 2020 than it was in 2019 or in previous years.
This sounds like good news, but it doesn’t tell the full story. While the rate of entrepreneurship was up, fewer people started their businesses because they wanted to but rather because they had to. This is undoubtedly related to the record-breaking unemployment rates we saw during the peak of the pandemic. In 2019, 86.9% of new entrepreneurs started their business out of opportunity; that number plummeted to 69.8% in 2020. This “opportunity share,” as it is known, is at its lowest rate in 25 years.