Blurred background image

What’s Behind the Surge of Pandemic Entrepreneurs?

What’s Behind the Surge of Pandemic Entrepreneurs?

During the last year and a half, there has been a record number of startups emerging. 

Through a combination of home confinement, accessible tech, furlough schemes, and time to contemplate the gap between the current state of things and future hopes and dreams, these factors have come together to produce a surge of entrepreneurs. 

It’s said that tough times make tough men. Judging from the last two years, tough times have certainly made entrepreneurs. During recessions in the US, there is typically a rise in entrepreneurial activity.  

When it comes to the pandemic, during 2020 there was an increase of 4.4 million new businesses in the US – this represents an increase of 24.3% from 2019. But more impressively, that’s an increase of 51% from the average between 2010 and 2019. 

And since the beginning of 2021, half a million more businesses have already been set up. 

So, with these numbers in mind, let’s take a look at what it has been like for these pandemic entrepreneurs, and how they’ve managed.

What’s Behind the Surge of Pandemic Entrepreneurs? Being bossless the source of inspiration 

With the lack of control over decisions such as forced layoffs and furloughs, being your own boss has provided a source of inspiration for many new entrepreneurs. In fact, 57% of them cited being in charge as the main inspiration for starting their own business. 

Creativity is a prerequisite 

Among a list of important qualities that an entrepreneur needs during a pandemic, respondents chose creativity as the number one by a big margin – cited by 57% of those surveyed. 

Homebound adults started selling their own goods out of kitchens, started selling their own gear, and took on a side-hustle to top up their income.  

Forced acceleration 

The pandemic propelled people’s plans forward, with 25% stating that they had been laid-off or furloughed due to the pandemic. Setting up their own business was jerked into action out of necessity. 

Yet many of them had been either thinking or planning an entrepreneurial move before the pandemic, or simply saw a forced opportunity amidst the uncertainty. 

D2C is the model 

The vast majority of new businesses to crop up since the pandemic are D2Cs. In fact, 80% of them sell directly to consumers. Thanks to the current state of global digital infrastructure, startups can set up shop and use models such as drop shipping, or have a presence on global marketplaces, has never been easy. 

The more popular products and services to be sold are retail goods (clothing, crafts) software (apps), and services both virtually and in-person).

What’s Behind the Surge of Pandemic Entrepreneurs? Low-cost barriers 

Around half of all those surveyed (52%) that has small businesses set it up using less than $10,000 in funding. And among these, another half set up their own business with less than $5,000. 

And separately, almost 80% of new founders used cash from their own bank accounts to get it off the ground. While around 30% received investment from friends and family. 

Digitally native business 

Startups that are digital-first mean that they require little more than an online presence – there are no physical barriers. A laptop and phone are all it takes. 

Around a quarter of new businesses stated that they are working as a purely digital business. 

PS: ArganoUV is one of the world’s leading digital products & experiences dev shopsContact us to see how we can work together. 

Related Ideas

If you got value from this article, you may enjoy these other articles, as well. We’re always adding value!

Digital Revenue Spikes 20% While Customers Stay Home
  • ArganoUV
  • Commerce
  • Salesforce Commerce Cloud

Digital Revenue Spikes 20% While Customers Stay Home

Digital revenue spikes 20% as customers stay home. These “shelter-in-place” splurges are aided by deeper discounts...
A Beautiful Look at the Cosmetics Industry
  • ArganoUV
  • Commerce

A Beautiful Look at the Cosmetics Industry

How are beauty and cosmetic brands dealing with the pandemic, and what’s expected for the holiday...
Mirakl Marketplace Connector for Salesforce Commerce Cloud
  • ArganoUV
  • Commerce
  • Salesforce Commerce Cloud

Mirakl Marketplace Connector for Salesforce Commerce Cloud

It’s never been easier and faster to launch and scale a business on Salesforce Commerce Cloud,...

Latest ideas

Our latest thinking about SF Commerce Cloud.

Umbraco Completes its Move to ASP.NET Core
  • ArganoUV
  • Technology

Umbraco Completes its Move to ASP.NET Core

Umbraco moves to ASP.NET Core as the content management system upgrades.
3 Denmark Plugs in Contentful to Expand its Products to Non-Subscribers
  • ArganoUV
  • Contentful

3 Denmark Plugs in Contentful to Expand its Products to Non-Subscribers

Plugging in the headless CMS Contentful, 3 Denmark expands its products to non-subscribers.
This Week in eCommerce Data: October 22nd, 2021
  • ArganoUV
  • This Week in eCommerce Data

This Week in eCommerce Data: October 22nd, 2021

This week’s ecommerce round up focuses predominantly on anxieties over the holiday season, plus more.

How can we achieve
awesomeness together?