Intuit, in its 2021 New Business Insights report, predicts 17 million new small businesses will be formed in 2022, a third consecutive record year for entrepreneurship.
The jump from working at big businesses to people launching their own comes as the pandemic has had dramatic effects on how people want to work.
Some 83% of the people surveyed by Intuit who want to start a business said COVID-19 has accelerated their plans to start their own business.
All totaled, the study spoke with 8,000 U.S. workers – and the accompanying Small Business Insights report surveyed 2,000 small business owners.
Microbusinesses (those with between one and five employees and less than $50,000 in start-up capital) and small businesses play a critical, but often underappreciated, role in local economies, providing jobs and serving their communities.
They’re small individually, but collectively, they employ 41 million people and have a $5 trillion economic impact, says Erin Igleheart, program director of the Start:ME Accelerator Program at Emory University’s Goizueta Business School.
Most of the startups in 2022 will be sole proprietorships, but Intuit predicts 5.6 million of those new small businesses will either incorporate or hire employees, topping the expected record of 5.3 million in 2021 (and the current existing record of 2020’s 4.3 million).
Finding those employees, of course, will be a challenge, as major corporations plan to open their purse strings to retain talent.
Base pay may increase by an average of 3.9% in 2022, according to The Conference Board’s most recent wage survey of 240 companies.
That’s the largest projected hike since 2008.
Nearly 90% of existing small business owners say online sales will be an important source of revenue in the coming year, with 40% saying increasing those is their top priority for 2022.
As a result, would-be entrepreneurs rate building a website as being even more important than securing funding or setting up a business bank account as they plan their business. (Nearly 70% say they will fund their business from their personal savings.)
Nearly half of the burgeoning small business owners say they will apply for a small business loan.
“Fintech has greatly expanded the availability of funding for small businesses and for many entrepreneurs it represents a simpler, faster way to access capital,” said Rania Succar, senior vice president of Intuit QuickBooks Money Offerings.
Source: Nasdaq, 20/12/2021
Last Updated on 21.12.2021 by iskova