The United States is witnessing a surge in entrepreneurship, with certain industries fueling the spike at a time when Covid-19 related unemployment is on the rise. This was the finding of Deluxe, providers of technological solutions to help businesses operate more efficiently and accelerate growth. Deluxe serves 4.5 million small businesses.
According to Deluxe, demand for its small business incorporation services has increased by 10% in 2020 compared to 2019. Deluxe mapped out the specific industries that have been driving the rise in small business incorporations.
8 Industries Fueling Surge in New Businesses
Real estate is the leading industry for new businesses emerging in the wake of the pandemic. Real estate is followed by construction, then trucking and cleaning services. Online sales is the fifth most in-demand industry for people starting their own business venture. This is followed by consulting, food trucks and landscaping.
By highlighting the sectors entrepreneurs are turning to, Deluxe’s analysis could inspire entrepreneurs to opt for an industry that is likely to succeed. Real estate, for example, has refused be derailed by the pandemic. The industry’s ‘survival’ has been pined on historically low mortgage rates coupled with a shift in how people use their homes. As Deluxe’s report confirms, starting a real estate venture in the current climate, could be a shrewd business move.
Barry McCarthy, President and CEO of Deluxe, commented on the escalating race for entrepreneurs to set up their own businesses.
“Small business owners are starting new ventures and careers in the middle of a pandemic. We think the increased use of Deluxe incorporation services is a leading indicator of small business futures and shows optimism in the small business market going into 2021. These entrepreneurs are risking it all, even at such an uncertain time. Deluxe has proudly supported the incredible pioneering spirit of small business owners for 105 years,” said McCarty.
Construction is Fueling Surge in Small Business Incorporation
Construction is hailed as the second top new business incorporation sector in the US at present. Construction is a major contributor to the US economy. Despite the Covid-19 disruptions, the industry remains a key player in the economy, especially amid a thriving property market. Business ventures within construction are therefore considered lucrative and sought-after.
Growth in the Trucking Industry
The surge in popularity of online shopping in the wake of the pandemic has contributed to growth in the trucking industry. Subsequently, trucking is another sector entrepreneurs are turning to in their quest to start their own business.
Cleaning Businesses are Deemed Lucrative
The fourth industry identified as fueling the spike in entrepreneurialism in the US is cleaning services. Cleaning businesses are easy to set up and don’t require a hefty investment. There is a wealth of cleaning franchises available to help entrepreneurs set up a successful cleaning business.
Optimism within the Small Business Community
As well as showing the most ‘pandemic-proof’ industries for budding entrepreneurs, Deluxe’s analysis also shows there is optimism within the small business community in the US. Despite economic downturns and uncertainty, entrepreneurs are not afraid to experiment and take risks to weather the Covid-19 storm and start their own business.
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Not surprised to see construction on the list. With historically low interest rates there are tons of people interested in buying a home. The available inventory isn’t very high, so builders are working like crazy. Looks like a good opportunity to me.