One of the most unexpected pandemic winners might just turn out to be new small businesses.
Why it matters: The number of entrepreneurs starting a business easily hit a record high in 2020, according to a new analysis by University of Maryland economist John Haltiwanger. That’s a surprising result, given the severity of the crisis.
The big picture: It’s now much easier than it was in 2008 to start a small business selling goods or services online.
- By far the largest single sector of new business formation is “nonstore retailers,” who account for one of every three new businesses formed over the pandemic. They were helped at every step of the process by e-commerce platforms such as Shopify and Stripe, which wasn’t even founded until 2009.
- Be smart: Renting space on Instagram is a lot easier, and can scale a lot more quickly, than renting a storefront.