Starting a business during a pandemic may not be as unusual as some people may think. A recent survey showed that just over a quarter of COVID-19 era entrepreneurs lost their jobs. Just over half stated that they decided to take the plunge into starting their own business specifically because of the pandemic.
Business owners who can adapt, change and be flexible with their business plans are able to make the pandemic era conditions work for them. As difficult as it is dealing with COVID-19 era limitations, creative entrepreneurs can adapt and make their businesses successful.
Why Starting a Business Now Is Different
Many entrepreneurs credit the pandemic as the reason why they started a business. Many of them lost their full-time jobs, and they had time to think about what they really wanted out of life. According to The Wall Street Journal, Americans are currently starting new businesses faster than they have been in the last decade. John Haltiwanger, an economist at the University of Maryland, states that “This pandemic is actually inducing a surge in employer business startups that takes us back to the days before the decline in the Great Recession,” even though more than 50% of new businesses typically do not last beyond the first five years.
During the COVID-19 era, many entrepreneurs have started businesses that fill a void such as consulting, hospitality, virtual IT, home improvement, delivery and cleaning services. Only time will tell if these businesses can power through and make it in the long term.
While starting your own business has many challenges, the pandemic presents some unique difficulties such as cash flow issues, adjusting to customers’ current needs and safely offering their services. It’s hard to tell how the pandemic will affect certain industries. The public has different needs than before the pandemic, and it will take innovative entrepreneurs to adjust to those changing needs. Customers are interested in supporting businesses that take safety and cleanliness seriously. Business owners who promote safety guidelines send a message that customers can enjoy the worry-free support of their services.
Pros and Cons of Pandemic-Era Entrepreneurial Life
Economic downturns are traditionally optimal times to start a new business. Companies like HP, IBM, Microsoft, Uber, General Electric, Netflix and Pinterest were all started during economic recessions. If an entrepreneur can be successful when times are difficult, it’s a promising sign that they can succeed when times are good.
Securing the finances to start a business can sometimes be a tricky endeavor. Current interest rates are low, and it may be a good time to take out a loan and make the interest rates work for you. The federal government provides small business loans for all types of businesses, and you should research what types of financial opportunities are available for entrepreneurs.
Finally, it’s helpful to remember that the era of COVID-19 is an unprecedented situation, and starting a business offers genuine opportunity and a heightened element of risk. A Bachelor of Business Administration in Entrepreneurship online from Lamar University will help prospective entrepreneurs build a business with strategy and planning.
This online degree program provides a solid foundation in finance, accounting, economics, management, marketing and analysis. In addition, students will gain valuable information on how to develop ideas into successful business ventures by building communication and business technology skills.
While starting a business during an economic recession might seem daunting, an advanced business degree can help you embark on your entrepreneurial goals with confidence.
Learn more about Lamar University’s online Bachelor of Business Administration in Entrepreneurship program.
Sources:
Nerd Wallet: How 2020 Has Influenced a New Class of ‘Pandemic Founders’
The U.S. Small Business Administration: Loans
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