The Pandemic Small-Business Boom Is Fueling the US Economy

During the pandemic, Americans’ bank accounts got plumped up with stimulus payments and money saved from not going out to dinner or on vacation. Blend in a hefty dose ofShark Tank

, fold in a measure of Musk- and Bezos-inspired dreams of becoming the next centi-billionaire, and the result is a boom in small-business formation. In 2021 the US saw a record 5.4 million registrations of startups, census data show. Two years on, the effect continues as inflation spurs many Americans to look for a side hustle and the acceleration of e-commerce and remote work makes it easier than ever to launch one. More than 5 million new business applications were filed in 2022, a 42% increase from pre-pandemic levels. “People want freedom,” says Karen Jenkins, an independent management consultant in South Carolina. “They want to take ownership of their lives and are willing to take more risks.

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