Will 2022 become a regular startup tsunami?
The passion and willingness for starting new businesses during the pandemic is doing great. According to The New York Times more than 4.3 million new businesses started their journey in the US in 2020. That's an increase from 3,5 million in 2019 in the US pre-pandemic market. Globally the willingness to start a business is burning bright as well. Even though not every new business is a “startup” it still raises the question if this wave could be the start of a regular startup tsunami in 2022?
One could argue that the pandemic is about to caused a lasting shift to a more startup prone global economy. Many people have faced unemployment and even more have probably reconsidered if there is a new way forward - one that may include starting a new business as change often provides motivation.
Online possibilities, tools and resources are certainly there and accessible for every startup entrepreneur to take advantage of. Management tools, economic bookkeeping systems, online graphic templates, email marketing templates and cheap web hosting solutions are all right at hand. Getting started seems fairly easy if you have the right idea and it seems like a lot of people are thinking just that!
The wave of new and brave startup entrepreneurs that emerged in 2019 and grew in 2020 is surely still rising and there are some indicators that the wave of startups worldwide is in no mood to refract and slow down. We have picked out some interesting trends and numbers that may surprise you a little bit.
Global trends and numbers:
According to Tech Crunch global funding increased by 8 billion USD in January 2021.
According to Micro Biz Mag’ startup statistics for 2021, January 2020 had the highest number of searches for ‘how to start a business’. Also Micro Biz Mag uncovered in their 2020 data that 65% of UK adults wanted to start their own business.
The investment environment in Europe is doing well and the number of investments in startups have increased since back in 2016. From 2016 to 2019 investment in startups actually doubled to 2031. This willingness to invest in startups in Europe may provide some motivation for new entrepreneurs. (Source: Statista)
Regardless of a global health disaster, the biggest global economy still produced a 24 percentage increase in US-based startups from 2019 to 2020.
In this day and age it doesn't take a lot of bank-roll to get you going on your startup journey. One-third of all small businesses in the US started their business with less than 5,000 USD. (Source: Kabbage)
Obviously these are just indicators and pointers, but we think its fair it’s to say that things are look pretty bright for the startup environment and that the humorous statement that “startup entrepreneurs are willing to work 16 hours a day in order to work 8 hour a day” still holds true - even in these times of uncertainty.
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The Heroic Rhino Team
