The entrepreneurial spirit is alive and well in America, with a record number of people starting businesses in recent years. According to data released by the U.S. Census Bureau, there were 5.5 million applications to start businesses last year, a half a million more than in 2022. And the trend shows no signs of slowing down, with over 1.7 million new business applications filed from January through April of this year.
So why are more people taking the leap into entrepreneurship? Columbia Business School professor Angela Lee believes that the recent wave of layoffs from big tech companies has created a pool of talented individuals who are now free to pursue their entrepreneurial dreams. Lee, who is the director of the Eugene Lang Entrepreneurship Center, points out that the opportunity cost of starting a business is lower during a recession, making it an attractive option for many.
Tech layoffs have been on the rise, with companies like Amazon, Meta, Google, and Microsoft letting go of thousands of employees last year. Despite this, the overall unemployment rate has remained stable, hovering between 3.7% and 3.9% in the U.S. over the past nine months.
As more and more people turn to entrepreneurship as a viable career option, it will be interesting to see how this trend continues to shape the business landscape in the years to come.