According to statistics, over five million new businesses emerged in the U.S. in 2022. The average number of start-ups since 2019 has been 4.4 million. While these statistics are relevant to the U.S. only, the rise in entrepreneurship is a global phenomenon that shows no signs of slowing down in 2023.
As individuals and communities step up to combat economic uncertainty, entrepreneurship emerges as a viable solution to ensure greater work-life balance and financial security. Let’s learn more about why the world is experiencing a rise in entrepreneurship.
Rise in Entrepreneurship: What’s Driving the New Trend?
The Evolution of Individual and Community Priorities
Millennials make up a large group of the global workforce. Moreover, they possess unique traits that set them apart from the previous generations.
Millennials expect a lot more than a paycheck from their employers. They look forward to great transparency and trust between organizations and employees. Moreover, they crave collaboration, teamwork, and greater work-life balance. One of the other unique characteristics of this generation is that they are risk-takers who are not as loyal to their workplaces as the previous generations.
The unique traits of the Millennials have evolved their priorities, and it can be considered one of the most significant driving forces behind the rise in entrepreneurship. When their expectations aren’t met at the workplace, the Millennials prefer to take risks and start a business that aligns with their values.
Easier Access to Technology and Capital
Despite uncertain economic conditions, access to capital is easier than ever. While inflation is a significant concern and is driving the interest rates, practically, it’s easier to start a new business than it has ever been.
One of the reasons is the minimal cost of start-ups which can be attributed to technological improvement. All it takes to start a business is to set up a social media page or a website using your laptop, which is relatively accessible and inexpensive.
Moreover, a broader community is now supporting entrepreneurs. Individuals and communities step up to invest in businesses to support entrepreneurship. Today, they expect a return from small businesses, which they would otherwise not receive by investing in the commodity or the stock market.
An Increased Desire to Pursue One’s Passion
Since the Millennials make up a large portion of the working population, they look at life from a different perspective. They desire a life beyond the typical 9-5 grind, offering them increased opportunities to pursue their life interests and passion while maintaining a work-life balance.
The increased desire to pursue passion and resulting happiness is another one of the key drivers of the rise in entrepreneurship.
Key Takeaways
The rise in entrepreneurship is a global trend driven by the changing priorities of individuals and communities. Given the economic uncertainty and the increased desire of individuals and communities for great work-life balance and happiness, the trend is likely to continue in the near future.
