With the COVID-19 pandemic, it disrupted the global economy. Businesses were forced to operate from their homes and innovation fueled the proliferation of businesses that do not require office- using technology they can create their product or service and deliver across the globe.
According to the latest data, about 5 million new registrations, or a 42% pre-pandemic increase in new business applications were processed in early 2022. Pandemic lessons of lay-offs or furloughs pushed many Americans to find means and ways to sustain their life and become financial free led to many individuals to capitalize on the internet and social media platforms to start making business or create side hustles.
Business owners no longer need to spend money to create their brick-and-mortar stores to interact with their target audience but can leverage different social media platforms to connect and engage with their customers, showcase their services and products, or build their brands.
Creating an online store is now easy. Software tools like Shopify will help you to easily establish your digital store and sell products. Managing finances has never been so easy in a few quicks using bookkeeping software like QuickBooks. Paying freelancers to help small business owners for their “as needed” assistance can now be a breeze using the Gusto platform.
This simplified process and less expensive way of creating a business made it easier for many minorities to enter the entrepreneurial route. Women and people of color are now able to compete and showcase their talent and level playing field.
What does it mean to the US Economy?
Diversification: Small businesses diversify the economic field, making access available to everyone and not only relying upon a few firms and corporations.
Localization: Small businesses strengthens local economic activity by providing jobs, paying taxes, and supporting local suppliers.
Economic Stabilization: Small businesses provide cushion and stability especially when the economy is facing challenging situations.
Innovation: Small businesses fuel creativity and are more agile to meet the growing demands of consumers fueling growth and competition.
Trade and Export: Small businesses can help reach international trade and export and extend the availability of US goods and services fostering economic activity and growth.
Income Distribution: Small businesses can open opportunities that can decrease income inequality by providing entry-level positions and upward mobility.
Final Thoughts
The COVID-19 pandemic might have changed the economic outlook of the US. But, small businesses are helping in providing stability and growth through innovation, trade and export and strengthening local communities. Small businesses significance lies in their ability to drive local development, support industries, and promote entrepreneurial spirit, making them an essential component of a thriving and resilient economy.
Dorotea Tuzon 
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