Why Starting a Business Now is the Antidote to a Sick Economy If you've thought about turning your side hustle into a full-time job or leaving your company to launch your own, 2022 is the best time to do it.
By James Blake Edited by Kara McIntyre
Opinions expressed by Entrepreneur contributors are their own.
The entrepreneurial landscape is constantly shifting. What was true yesterday may not be true tomorrow, and forward-thinking businesses must stay on top of these massive shifts to remain competitive.
As an entrepreneur myself, I attribute much of my success to the ability to adapt and anticipate what lies ahead. It's no secret that your business will suffer if you remain trapped in the past.
Since we are now a few months into 2022, let's take a deeper look at some recent patterns to see why this year is a great one to be an entrepreneur.
An era of opportunity for entrepreneurs
Many people are likely thinking of leaving their job to launch their own businesses at the moment. We live in an extraordinary period of opportunity for entrepreneurs, and the world is welcoming new ideas, changes and evolution. It is generally assumed that down markets and moments of upheaval are terrible for startups and entrepreneurs; however, this just isn't true. Many of the world's largest and most recognizable companies, such as Uber, Airbnb and Netflix, were founded in down markets or during the previous global recession.
Contrary to popular belief, consumers and investors are typically more open to innovation and market upheaval during downturns. Consumers are receptive to change, while angel investors emerge during downturns and seek out startups and small firms with the expectation of making a profit in the future. According to British Business Bank, over 57% of British angel investors continued to invest during the pandemic, and 54% stated they are even more engaged with their portfolio now than they were before Covid-19.
No one was prepared for the pandemic. People had to figure out how to maintain business when they had to stop, reduce operations or adapt to a new business model. They needed answers quickly.
Related: 7 Important Lessons for Entrepreneurs and Other Business Leaders in 2022
These issues have stimulated new and seasoned entrepreneurs to develop innovative goods or services. If you offer solutions to a recent concern, starting your business in the first place might represent the difference between success and failure.
According to Stanford Graduate School of Business research, venture capitalists are still largely fully financed and in a favorable cash position to continue investing in startup enterprises with a relevant product or service for the current business climate.
Unlike in previous economic downturns (such as the aftermath of the dot-com bubble), these investors highlighted that they are busier than ever and continue to encourage entrepreneurial concepts that can help with today's commercial and societal concerns.
Existing industries have another chance thanks to innovation
Innovative entrepreneurs understand the need and the potential to address new pain points or fix old ones. This covers many industries that have been affected the most in the past two years, such as retail, arts, entertainment, food services, and hospitality.
According to the 2020 JustBusiness survey, over 70% of today's entrepreneurs intend to integrate an in-person component to the firm they are establishing. From drive-in cinemas and concerts to drive-thru art shows, it's evident that a bit of creativity can propel a startup's success in the face of hardship.
The World Economic Forum research shows social entrepreneurship might be one of the primary driving forces that help communities and the world move beyond the events of 2020. Jumping in to help tackle the pandemic's social evils and other existing challenges, like poverty and pollution, offers meaning and proud moments.
Related: 3 Key Ways to Be a Successful Business Owner in 2022 and Beyond
From contact tracking and medical gadgets to mental health services and solutions that bridge the digital gap, entrepreneurs now have the chance to demonstrate how their ideas can improve the world.
The JustBusiness survey also found that these entrepreneurs intended to hire staff. Almost 70% had created or were in the process of generating new positions. Starting a business now is the antidote to a sick economy. In an era when unemployment is at an all-time high, these positions are more important than ever. Employees now have paychecks and are not looking for jobs. They can pay their bills and buy goods and services, resulting in a beneficial economic ripple effect for businesses, people and communities.
Priorities have been reassessed since Covid-19
The increased interest in entrepreneurship can be explained in part by the "Great Resignation." The different lockdowns gave employees the time to stop and honestly think about what they want to achieve in their careers, with some choosing to go it alone and become their own boss. According to statistics, employees are now writing resignation emails, handing in their notices and heading for the back door in fleets.
Did you know that job openings actually reached an all-time high in October 2021 in the U.K.? With available positions exceeding 1.1 million for the first time, there are around 4 million fewer employees in the country. It's a bit crazy when you think about it (in a good way).
The pandemic has given birth to wholly new sectors, while also completely reshaping many established ones. If entrepreneurs want to debut a fresh concept or an innovative product, now is the time to do it.
Even if there are several reasons to be an entrepreneur in this new business climate, you must take safeguards and prepare properly to ensure success. Be patient, don't hurry your decisions and continue to steer your efforts using starting processes such as a business plan.
There has never been a better time to shift from employee to entrepreneur, with demand, opportunity, access to capital and a desire to make a significant change in the world.
It is great to see so many people interested in starting their own enterprises, since small businesses are the backbone of our economy. They will, however, face problems they have never encountered before, and journeying into entrepreneurship requires not just grit — but also a desire to learn from those who have completed that journey.
Related: 21 Success Tips for Young and Aspiring Entrepreneurs
