New start-ups of small businesses reached record numbers during 2021, according to recently published research.
The trend for new business start-ups is expected to continue throughout 2022 as an increasing number of Americans pursue their dreams of owning and operating their own business. The meta-data analysis was undertaken by SCORE who are described as ‘mentors to America’s small businesses’, as well as being a useful resource partner of the U.S. Small Business Administration.
Record Number of New Businesses Started in 2021
The results of the analysis are good news for budding entrepreneurs everywhere as more and more people realise their business-owning dreams. With more small businesses on the market, there are more opportunities to develop mutually beneficial partnerships with other new and exciting companies.
It is also interesting to note which industries saw the biggest increases in new business applications. The data reveals retail trade applications to have grown by 74% during 2021, compared to the pre-pandemic numbers of 2019. There has also been a massive increase in digital businesses, with many of the new retailers going online to sell their goods. The study actually revealed that 88% of entrepreneurs believed online sales were an important source of revenue, and with almost all of those surveyed indicating digital tech is crucial to their business.
The accommodation and food service sector saw a 55% increase in new business applications, with new business applications in the health and social assistance up by 23%.
Small Business Owners ‘Are Not Alone’
The CEO of SCORE, Bridget Weston, wanted to let small business owners know there is support out there to help them. Speaking about the data, Weston said: “As new business applications have risen, so have mentoring requests from entrepreneurs seeking start-up guidance: SCORE mentor requests increased 10.75% in 2021 vs. 2020.
“As more and more people decide they want to create their own businesses, SCORE stands ready to provide the support needed for these entrepreneurs to be successful.”
Small Business Applications Increase Year-on-Year
The amount of small business applications was already steadily increasing over the last few years before the pandemic struck. There were around 3 million in 2016, with that number rising comparatively slowly to 3.2 million in 2017. Another slow but steady rise saw the number reach 3.5 million by 2019, with a significant leap to 4.4 million during 2020.
Now 2021 has continued the trend of more and more new business applications, with the current figure rising above 5 million over the last twelve months.