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Here are 20 of the most innovative entrepreneurs who should be on your radar. [Sidekick]
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Entrepreneurs
At the rate Americans are creating new businesses, Shark Tank is going to need to increase its episode count by about 4,000 to keep up with demand. More than 5 million new business applications were filed in 2022, according to the latest data from the US Census Bureau. About 14,000 new business applications were filed in the US every day last year—although it’s still too soon to know how many of those aspiring Scrub Daddies will actually make it off the ground.
Whether this represents a testament to the country’s entrepreneurial spirit, an indictment of 9-to-5s, or simply a case of everyone seeing the same TikTok about the tax benefits of forming an LLC, it’s a sign that the pandemic-era startup boom may be here to stay.
And it was quite a boom
Despite the vast number of Steve Jobs biopics that hyped up building a company from your garage, the US was actually experiencing a 40-year decline in entrepreneurship before the pandemic, per the NYT. But then things changed: The number of new businesses created in 2020 increased by 24% from 2019 to 4.3 million as laid-off workers found their savings accounts boosted by stimulus payments and a bull market. Also helpful: rock-bottom interest rates. The trend continued in 2021, ballooning to 5.4 million applications.
And now we know that the swell continued into 2022. But some areas saw more growth than others. The Southern US has had a 53% increase in new businesses since 2019, with the most growth coming from Florida and Texas, per Bloomberg analysis. New England, on the other hand, is falling below the national average.
Looking ahead…we’ll have to wait and see if these businesses thrive and the trend continues in 2023. A looming potential recession, high inflation, and personal savings dropping to near 60-year lows (per the Bureau of Economic Analysis) all signal turbulence ahead for new companies, which already have a roughly 50% failure rate during good economic times.
MK
Morning Brew
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