According to a new survey of small business owners by JustBusiness, a small business resource site, entrepreneurs are motivated despite the pandemic. Over 400 business owners were surveyed about their entrepreneurial plans and a third of respondents said market changes inspired them to start businesses. 1 in 5 respondents didn’t even have plans to found a business until COVID-19 struck but do now.
For many of these business owners, this will be the first business they found, either due to being laid off or because they recognized an opportunity linked to the pandemic. 51.2% of respondents said they identified a new business opportunity, 32.9% said they identified a new opportunity relating to changes in the market due to COVID-19, and 26.8% said they were laid off from a job.
According to the survey, the following are key industries entrepreneurs plan to launch businesses in. 16.8% of entrepreneurs surprisingly plan to start accommodation and food service businesses. 11.7% plan to launch retail trade businesses and 10% plan to start arts, entertainment, and recreation businesses.
To finance these new businesses, 58.4% respondents said they’d use personal savings for funding, 55% said they’d utilize business loans, and 19% responded they’d use angel or venture capital. Most businesses will use multiple funding sources to launch new ventures.
An infographic accompanied the JustBusiness survey with essential statistics from business owners about their plans. Recessions or economic downturns often present exciting opportunities for enterprising entrepreneurs and the COVID-19 pandemic is no different.