In today’s economy, entrepreneurs create new businesses to solve problems or offer services and products. As a result, entrepreneurship helps to create jobs and contributes to economic development across communities.
There are many different types of business creation. Some entrepreneurs build companies that focus on innovation with a single unique product or service, like the founders of Google (GOOG) and Facebook (FB).
Others start small, low-risk companies that earn a profit by selling a product or offering a service. These entrepreneurs typically invest their own money and don’t need outside investors.
These entrepreneurs often build their company over time, using a business model that involves scaling up to reach multiple markets. They may use a mix of funding, including their own money and loans from banks.
They might also rely on social media to sell their products or services.
When it comes to new business formation, the data suggest that we’re entering an exceptionally strong phase of entrepreneurship. The pace of new business applications is at an all-time high, and a substantial number of them will eventually turn into businesses with actual paid employees.
This surge in entrepreneurship is likely a testament to the strength of the U.S. economy’s underlying resiliency, and it will help place us on a solid path toward economic recovery.
The rate of business creation has been on a long-term downward trend, dropping in 2008 and 2009. But this data shows that the resurgence we’re seeing is quite broad-based, and it spans a wide array of sectors. The most outsized gains in business applications came in transportation and warehousing; retail trade; and accommodation and food services.