Entrepreneurship Is on the Rise as New Business Applications Surge
October 12, 2020
With more than 10 million jobs lost since the start of the pandemic, the job market remains tight. Many Americans, however, are not waiting for jobs to return, opting to start businesses of their own. Entrepreneurship is on the rise, with the number of applications to start new businesses jumping nearly 40% for the week ending October 3 as compared to the same week last year, according to data from the U.S. Census Bureau.
The trend is encouraging to many economists, who attribute the surge to pro-business conditions like low-interest rates on loans. Many have also noted that despite big job losses during the last recession, we did not see a similar increase in new business applications, indicating a higher degree in confidence surrounding the state of the economy. Goldman Sachs, however, cautioned in a recent research note that the jump could be partially caused by a backlog of applications from the lockdown period, and may not be as impressive as it initially seems.