Despite the pandemic’s negative effects on the economy, such as business closures and labor shortages, it has not completely affected the country’s growth. One positive sign is the increasing number of people interested in entrepreneurship. According to the Census Bureau, the Great Resignation may signify that more people are starting to believe in the importance of entrepreneurship.
In July 2020, there were over 500,000 new business applications, a significant increase from the previous year. The pandemic has also heightened the number of people looking to start a new business. This is because the demand for services and products related to well-being has increased. Existing businesses are typically not able to fill these gaps.
Instead of starting companies due to the lack of traditional opportunities, people are choosing to start their own businesses due to the current economic climate. This is a significant shift in the way entrepreneurship is conducted. It shows that people are starting to believe in the importance of being entrepreneurial.
Adaptation is Driving Business Owners
The pandemic has highlighted the need for entrepreneurs to adapt to the changes brought about by the environment. This is because it can be very challenging to keep up with the changes in the market and the demand for their products and services. Entrepreneurs might be creating new concepts or running an existing business while waiting for the supply chain to improve.
Having already been in business for a long time, companies still adapting to environmental changes may need to make overnight changes to their operations. For instance, due to the outbreak of new coronavirus strains, consumers may be postponing their shopping and in-person gatherings.
Despite the potential effects of the pandemic, many businesses will still be able to meet the demand for their products and services. Even though consumers may be hesitant to go into a retail store, they still require these services and products. Companies adapting to environmental changes can still increase sales by implementing new strategies and methods.
Increased Accessibility in Technology
The rise of technology has made it possible for people with an idea to start and market their businesses. Due to the availability of various resources and the internet, it has become easier for people to start and market their businesses.
Through online marketplaces for services such as pet sitting, personal shopping, and ride-booking, people can get their feet wet and start their businesses. Some people might not be able to start a company due to their lack of confidence or would rather not spend much money on marketing a separate business. With the help of third-party platforms, people can now start and market their businesses without having to worry about the risk of running a business.
While some people may go all in with their employers, others may choose to become freelancers for platforms that offer various interests. For instance, a finance specialist may want to pursue a lifelong passion for working with animals. By providing pet sitting services, people can diversify their income and meet the needs of communities.
Motivating Business Models through Social Responsibility Concerns
Due to the concerns about climate change and the socioeconomic inequities in society, many entrepreneurs are developing new ideas and businesses focused on helping those less fortunate. Nonprofit organizations are also seeing an increase in the number of ventures aimed at helping disadvantaged groups.
A study conducted by McKinsey revealed that by 2050, the consumer demand for various products and services would shift due to the reduction of greenhouse gas emissions. The report also noted that oil and gas production would decrease by around 55% and 70%, respectively. Due to the increasing concerns about climate change, many entrepreneurs are starting to step up their efforts in developing new energy sources.
Some of the new businesses developing new energy sources include those focused on reducing the pollution caused by construction processes. Others are developing systems that can be used to eliminate harmful chemicals from the environment. In addition, some are also developing renewable energy solutions for homeowners. These developments reflect the desire to start a business that is more than a profit-oriented venture.
The concept of entrepreneurship has been around for centuries. However, due to the emergence of new technologies and the uncertainty caused by pandemics, it has become more attractive for people to start and operate their businesses. As the systems and structures that have been in place for a long time become less viable, many entrepreneurs are beginning to adapt.
Due to the emergence of new technologies, business models are designed to be more flexible, often at a moment’s notice. The increasing number of people choosing self-employment is also contributing to developing a more diversified path to success. No longer are workers motivated by their paycheck; they are seeking meaning and purpose in their careers.