Why Starting a Business Now is the Antidote to a Sick Economy

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The entrepreneurial landscape is constantly changing. What was true yesterday may not be true tomorrow, and forward-looking companies need to be at the forefront of these massive changes to remain competitive.

As an entrepreneur, I attribute much of my success to my ability to adapt and anticipate what lies ahead. It’s no secret that your business will do it it hurts if you get stuck in the past.

Since we are a few months away from 2022, let’s delve into some recent patterns to see why this year is great for being an entrepreneur.

An era of opportunities for entrepreneurs

It is likely that many people are thinking about quitting their jobs to start their own business right now. We live in an extraordinary period of opportunity for entrepreneurs, and the world is embracing new ideas, changes, and evolution. In general, down markets and times of turmoil are supposed to be terrible for startups and entrepreneurs; however, this is not true. Many of the world’s largest and most recognizable companies, such as Uber, Airbnb and Netflix, were founded in declining markets or during the previous global recession.

Contrary to popular belief, consumers and investors tend to be more open to innovation and market changes during recessions. Consumers are receptive to change, while angel investors emerge during crises and look for startups and small businesses with the expectation of making a profit in the future. According to the British Business Bank, more than 57% of British angel investors continued to invest during the pandemic and 54% said they are now even more committed to their portfolio than before the Covid-19.

No one was prepared for the pandemic. People had to figure out how to keep the business going when it had to stop, reduce operations, or adapt to a new business model. They needed answers quickly.

Related: 7 important lessons for entrepreneurs and other business leaders in 2022

These problems have encouraged new and experienced entrepreneurs to develop innovative goods or services. If you offer solutions to a recent concern, starting your business first can make the difference between success and failure.

According to research from the Stanford Graduate School of Business, venture capitalists are still largely fully funded and in a favorable cash position to continue investing in emerging companies with a product or service relevant to the current business climate.

Unlike previous economic crises (such as the aftermath of the dot-com bubble), these investors stressed that they are busier than ever and continue to foster entrepreneurial concepts that can help with current business and social concerns.

Existing industries have another chance thanks to innovation

Innovative entrepreneurs understand the need and potential to address new issues or solve old ones. This covers many industries that have been hardest hit in the last two years, such as retail, arts, entertainment, food services and hospitality.

According to the 2020 JustBusiness survey, more than 70% of current entrepreneurs intend to integrate a face-to-face component into the company they are establishing. From movies and concerts to art shows, it’s clear that a little creativity can drive a startup’s success in the face of adversity.

World Economic Forum research shows that social entrepreneurship could be one of the main driving forces in helping communities and the world overcome the events of 2020. Helping address the social ills of the pandemic and other challenges, such as poverty and pollution, offers a meaning. and moments of pride.

Related: 3 Key Ways to Be a Successful Entrepreneur in 2022 and Beyond

From contact tracking and medical gadgets to mental health services and solutions that transcend the digital divide, entrepreneurs now have the opportunity to demonstrate how their ideas can improve the world.

The JustBusiness survey also found that these employers intended to hire staff. Almost 70% had created or were in the process of generating new sites. Starting a business now is the antidote to a sick economy. At a time when unemployment is at an all-time high, these positions are more important than ever. Employees now have paychecks and are not looking for work. They can pay their bills and buy goods and services, resulting in a beneficial economic domino effect for businesses, individuals and communities.

Priorities have been reassessed since Covid-19

The increase in interest in entrepreneurship can be explained in part by the “Great Resignation”. The different confinements gave employees time to stop and honestly think about what they want to achieve in their career, with some choosing to do it on their own and become their own boss. According to statistics, employees now write resignation emails, deliver their notices and head to the back door of the fleets.

Did you know that job vacancies reached an all-time high in October 2021 in the UK? With available vacancies exceeding 1.1 million for the first time, there are about 4 million fewer employees in the country. It’s a little crazy when you think about it (in a good way).

The pandemic has given rise to entirely new sectors, while it has completely reshaped many other established ones. If entrepreneurs want to launch a fresh concept or an innovative product, now is the time to do so.

Although there are several reasons to be an entrepreneur in this new business climate, you need to take safety precautions and prepare properly to ensure success. Be patient, do not rush your decisions, and continue to direct your efforts through initial processes such as a business plan.

There has never been a better time to move from employee to entrepreneur, with demand, opportunity, access to capital and a desire to make a significant change in the world.

It’s great to see so many people interested in starting their own businesses, as small businesses are the backbone of our economy. However, they will face problems that have never been encountered before, and the path to entrepreneurship requires not only strength, but also a desire to learn from those who have completed this journey.

Related: 21 Success Tips for Young Entrepreneurs and Aspirants

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