Your trusted source for the latest news and insights on Markets, Economy, Companies, Money, and Personal Finance.

The Pandemic’s Silver Lining: A Rise in New Businesses

The Covid-19 pandemic had negative impacts on the U.S. economy, but it also had some unexpected positive effects. One of these positive effects is a surge in new businesses being started by Americans. Researchers from the University of Maryland and the Federal Reserve have found evidence of this surge, which includes a wide range of new companies from restaurants and dry cleaners to high-tech start-ups. This increase in entrepreneurial activity is believed to be a response to the changes brought about by the pandemic, as well as the financial assistance provided by the government.

In the past, there has been a decline in start-up activity in the U.S., with a few large firms dominating the market. However, the researchers suggest that the pandemic may have broken this trend and led to a revival of business dynamism. It is still too early to determine if this reversal is sustainable, but supporters of increased economic dynamism are optimistic about the ongoing surge in start-up activity.

According to the researchers, there has been a sustained increase in new business activity and job creation. The geographical distribution of these new businesses aligns with the shift towards remote work, with fewer start-ups in downtown areas and more in suburban areas. Monthly applications for new businesses, particularly those likely to create jobs, have seen a 30% increase compared to pre-pandemic levels in 2019. This surge in applications coincided with the government’s stimulus efforts during the pandemic. These trends may help explain the labor shortages experienced by existing companies, as they now compete with a larger number of start-ups for workers.

The study does not directly address whether President Biden should be credited for this entrepreneurial surge. However, White House officials believe that the measures implemented through the $1.9 trillion American Rescue Plan have supported the growth of new businesses. The plan provided financial assistance to individuals, businesses, and local governments, creating a supportive environment for entrepreneurs.

Share this article
Shareable URL
Prev Post

August Saw a Decrease in the Inflation Measure Preferred by the Federal Reserve

Next Post

Google’s Rally Continues to the Next Level

Leave a Reply

Your email address will not be published. Required fields are marked *

Read next
New York Group Financial institution, the midsize lender beneath stress over its actual property loans and inner…
One April afternoon in 2018, Zhang Yiming, the founding father of the Beijing-based on-line media firm…
Lastly, some excellent news on inflation. The Shopper Worth Index climbed 3.4 % in April from a yr earlier, down…
This text is a part of Ignored, a collection of obituaries about outstanding folks whose deaths, starting in…