A record-breaking 4.38 million new businesses were established in the U.S. in 2020, as reported by the Federal Reserve Bank of St. Louis.
This trend continued into 2024, with the number of new businesses surpassing previous records within the first 11 months of the year.
The COVID-19 pandemic prompted many individuals to start their own businesses due to factors such as job losses and the need to boost income. A survey conducted by BW in 2024 revealed that some people were also motivated by the desire for increased flexibility and autonomy.
If you want to increase your income
According to the BW survey, around 50% of entrepreneurs cited increasing their incomes as a primary reason for starting their businesses. Thomas M. Sullivan, from the U.S. Chamber of Commerce, noted that rising prices have driven some individuals to pursue entrepreneurship out of necessity.
Starting a business with the goal of generating income requires careful financial planning, especially in the initial stages to control startup costs and focus on revenue generation.
The impact of COVID-19 has made entrepreneurs more vigilant about managing their finances, emphasizing the importance of maintaining a strong balance sheet.
If you want to monetize a side hustle
The BW survey revealed that a significant number of business owners transitioned from enjoyable hobbies or successful side hustles to full-fledged businesses. One such example is Kristy Cruz, who turned her passion for arranging succulents into a thriving business.
While growing her business, Cruz continues to work a full-time job, showcasing the balancing act of transitioning a side gig into a main source of income.
Maintaining financial security while pursuing entrepreneurship is crucial, especially when juggling multiple responsibilities.
If you want to control your schedule
For many entrepreneurs, the appeal of managing their own hours is a driving force behind starting a business. Flexibility in scheduling is particularly important for parents and caretakers seeking to balance work and personal life.
Shelly Allhands, a parent and business owner, found that entrepreneurship provided her with the perfect balance of pursuing her passion while still prioritizing her family.
Owning a business allows individuals to adjust their schedules according to their caregiving needs, offering a level of flexibility that traditional employment may not provide.
Seek support as you adapt to entrepreneurship
As an entrepreneur, it’s important to be prepared for the evolution of your business and motivations over time. Seeking mentorship and support can help navigate the challenges of entrepreneurship.
Helen Ianniello’s journey from a travel nurse to a business owner exemplifies the adaptability and perseverance required in entrepreneurship. With the right guidance, entrepreneurs can overcome obstacles and achieve success.
The impact of entrepreneurship extends beyond financial gains, as it allows individuals to make a meaningful difference in their communities and pursue their passions.