In 2020, a surprising number of 5.2 million new businesses were started in the United States – an increase of nearly 40 percent from the previous year. This stark jump in new startups is a sign that the COVID-19 pandemic has not deterred entrepreneurs from starting new businesses.
The surge in new companies was largely driven by the retail sector, which saw new business formation increase by more than 60 percent. This may be due to the rise of e-commerce and digital shopping, which provided an opportunity for entrepreneurs to start small businesses and engage in retail.
Additionally, the technology sector saw a boom in startups, with more than 1.1 million new businesses created in 2020. This was a result of the increased demand for digital services and products due to the pandemic.
The surge in new businesses is a sign of resilience and optimism, as entrepreneurs are finding ways to overcome the economic disruption caused by the pandemic. It is also a sign that the COVID-era business boom is likely to have legs and continue into 2023.
Read more at bloomberg.com
