The global pandemic has resulted in a significant increase in the number of new businesses being established. This is attributed to the many people who lost their jobs and started their own companies. According to the Financial Times, the number of new businesses started during the pandemic has been rising in various countries.
In the US, the number of applications for a business license reached its highest level in July 2020 compared to the same period in 2019. According to the Census Bureau, the number of new businesses started in the country increased by 95% in October.
In Japan, the number of new businesses was at its highest in September 2020 compared to the same month in 2019. The number of new businesses in the UK increased by 30% in November and December of that year. According to the National Statistics Office, the number of startups has also been growing significantly.
Due to the increasing number of new businesses, startups focus on areas where they can respond to the changing consumer demand. For instance, in the UK, online trading was cited as the main factor that contributed to the country’s startup boom during the first 11 months of 2020.
According to Evan Luthra, the CEO of Startup Studio Online, the number of IT startups grew by 20% in 2020 compared to 2019. The growth rates peaked in the last quarter of the year. Most of these new businesses are focused on areas such as biomedicine, telecommunications, and decentralized technologies.
He noted that many of these new businesses also focus on areas where there was a gap in the market. For instance, many of these startups are trying to digitize the sales process in the real estate industry.
The introduction of digitization in the real estate industry during 2020 has led to several startups focused on providing specialized services to the industry. One is Witly, which allows real estate agents to promote their ads through various online platforms.
The company’s platform allows real estate agents to focus on selling and buying real estate. It eliminates the need for them to spend time on administrative tasks and provides them with time-saving tools.
According to Andy Ann, the co-founder of YAS Insurance, the pandemic has led to the emergence of several insurtech innovations that have led to the reduction of claims. For instance, insurers have increased their profitability by reducing the number of activities and claims. In addition, Covid has also been fast-tracking the development of its Insurtech platform, which will allow customers to access insurance on a subscription basis.
One of the most prominent examples of digitization within the healthcare industry is the provision of temporary staffing services. In the UK, a startup known as Locumotive was one of the first to provide this service through a mobile app. It allows healthcare professionals to connect with customers and manage their expenses and payments.
Another example of digitization within the healthcare industry is the provision of temporary staffing services. Due to the increasing number of industries shifting online, the demand for programmatic advertising is expected to grow significantly. According to estimates, the market is expected to reach $147 billion by 2021. In 2020, the share of programmatic within digital media was 69%, expected to rise to 72% by 2021.
The rise of crowdfunding has also led to the emergence of new platforms focused on providing various types of services to the industry. Some of these include online conferencing, fitness applications, and teleworking services.
According to Gregory Daco, a U.S.-based specialist at Oxford Economics, many new businesses in the country have a single employee. This suggests that they are being established by people who have lost their jobs due to the pandemic. He noted that these businesses are unlikely to be the main source of income for the owners, but they can help boost earnings in the gig economy.
Due to the outbreak of the coronavirus pandemic, many businesses have lost money. However, the closures in the worst-hit sectors have allowed new businesses to expand their operations and provide better prices to their customers. Many of these businesses also had to rethink their business models. One of the most important factors these entrepreneurs should consider is the increasing demand for virtual solutions. This is why it is important that they immediately respond to this demand by launching a new product.
One of the most effective ways to reduce business costsbusiness costs is by renting or leasing office space in areas with lower rental prices. This can be done by using remote work programs and reducing the number of warehouses. IT entrepreneurs should also consider investing in crowdfunding platforms as the interest from institutional and private investors has increased. Due to the depreciation of fiat money, startups’ shares are now an attractive investment asset.
Despite the various factors that have affected the business environment, experts predict that the number of entrepreneurs will continue to increase. They noted that the vaccination rate and the passing of the pandemic’s turning point would not have a negative effect on the growth of entrepreneurship.
The rapid emergence and growth of startups during the pandemic have been a positive factor for the global economy. It is expected that these developments will help many economies quickly recover from the effects of the pandemic. Unfortunately, some of these new businesses may not be able to withstand the competition and will most likely go out of business.