While 2020 was terrible on many counts, it was a banner year for entrepreneurship, according to a new report from policy think tank Economic Innovation Group.
Faced with increasing challenges, Americans filed more applications for new businesses in 2020 than in any year prior, according to an analysis of U.S. Census Bureau data by EIG.
End-of-year data shows that in 2020, new business applications were up 24% from 2019 and were 51% higher than the 2010-2019 average.
There was a rocky start to the year where many companies froze spending and millions of Americans lost work, essentially pausing all likely business applications during that time. But in late summer and through the rest of the year, the rate of new applications recovered and rose to just shy of 4.5 million.
As it became clearer that the pandemic was more than a temporary dislocation, entrepreneurs seemed to gain confidence in pursuing new business opportunities.