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Is it smart to start a business in 2020? COVID-19 is inspiring people to do just that

Opportunity knocks alongside viruses.

Is it smart to start a business in 2020? COVID-19 is inspiring people to do just that
[Photo: fauxels/Pexels]

Entrepreneurs are carpe dieming it through 2020: A new survey of 428 entrepreneurs by JustBusiness found that more than 1 in 5 entrepreneurs are starting businesses that were not planned before the pandemic. Surprisingly, treacherous industries and in-person business models are not deterring entrepreneurs:

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  • Nearly 40% are launching into industries facing tough times, including accommodation, food services, retail, and arts/entertainment/recreation
  • Nearly 70% will have an in-person component to their businesses, despite huge consumer shifts to virtual products and services

For entrepreneurs who had projects in the works last year, the pandemic has put on the brakes: Nearly three-quarters have delayed their launch dates due to the outbreak, and most have been forced to alter plans. Some watched investor funding disintegrate as states closed their sectors, while others repurposed their startup funds for household necessities.

[Image via Just Business]
Overall, entrepreneurs are decidedly making lemonade: A third said that they’re motivated by a new opportunity related to changes in the market from COVID-19, and a quarter have started their businesses since being laid off.

Recessions have long been known to be a good time to found a future corporate empire.

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