Ninety-six percent of new entrepreneurs say the pandemic is motivating or giving them the motivation they needed to start their own business. This positive statistic comes from Azlo, a banking platform for small business owners, freelancers, and entrepreneurs.
In mid-March 2020, Azlo witnessed an uptick in new accounts opening. Wanting to understand the reasons behind the boost in business, Azlo conducted a survey. ‘The COVID Economy’ report interviewed 1,000 of Azlo’s newest customers across the United States.
The Unexpected Impact of the Pandemic
Since the impact of the Covid-19 pandemic started to escalate in March, businesses have been plagued with negativity. Azlo’s research shows the unexpected impact of the pandemic. It shows how the health crisis has provided many entrepreneurs with the impetus they needed to kickstart their venture.
More Time to Get a Business Off the Ground During the Pandemic
The research found encouraging growth in the “COVID Economy” with the pandemic giving entrepreneurs the opportunity to start a business.
50% of the survey participants said they had more time to get their venture going during the health crisis. This is because other activities were put on hold. 40% of respondents said the pandemic gave them the prompt they needed to start their business.
The “COVID Economy” is Here to Stay?
Rather than being an isolated trend, the study found the renewed sense of confidence in the “COVID Economy” is here to stay. This could give encouragement to entrepreneurs that may be hesitating about starting a venture. Knowing that the pandemic has acted as a motivator for others, could inspire indecisiveness entrepreneurs to take action.
As Jonnita Dockens of Confidante Consulting commented in Azlo’s ‘The COVID Economy’ report: “COVID really motivated me to do something that I was thinking about pre-COVID. It was almost as if COVID was the sign telling me, “You need to do this because everything’s going digital.”
Reasons Why COVID Pushed Entrepreneurs to Start a Business
The survey asked new business owners how the outbreak motivated them to start their own ventures.
63% said they wanted to work for themselves. Over half (58%) said they had a desire to pursue something they were passionate about. 46% of respondents said they felt their business idea was solid.
Money was also a key motivator in the wave of new businesses emerging during the pandemic. 32% of new small business owners said they wanted to make more money than they felt they could in employment. 30% of participants say the started a side business to supplement income from employment.
What is in the Pipeline for COVID-19-Born Businesses?
The crop of COVID-19-born business owners are serious and are in it for the long term, the research found.
37% of the new business owners surveyed said they feel the pandemic created a marketing opportunity. Almost 40% of founders say they either already have employees or intent to hire in the near future.
Almost all (96%) of small business owners say they intend to keep their business going, even as the economy improves.
Azlo’s research proves that small businesses continue to be the backbone of the US economy. Even during times of crisis, with the right attitude and focus, small businesses can start a new and thrive.