The pandemic has brought many challenges for businesses, but for some entrepreneurs, it has been a blessing in disguise. In the last two years, there has been a surge in small business launches across the country. From people who lost their jobs and decided to go out on their own, to others who turned their side hustles into full-time jobs, the pandemic has provided people with the opportunity to try something new.
Jonathan Floyd from Kenner, Louisiana, is one of those entrepreneurs. At the start of the pandemic, he left his corporate job and invested all his time into his passion project, a gift box company specializing in gifts from New Orleans. With people unable to visit the city due to travel restrictions, Floyd’s business started to receive a whirlwind of continual orders. Today, Box of Care Gift Company is thriving, and Floyd is planning to expand.
For many small business owners, it’s not just about making money. It’s about growing something they can pass on to their children and having the freedom to be their own boss. While major corporations and tech companies continue with massive layoffs, small businesses are keeping the economy going. According to the U.S. Small Business Administration, there are 32.5 million small businesses in the U.S., making up 99.9% of all U.S. businesses.
Brett Sussman, an American Express spokesperson, calls it an “entrepreneurial boom.” “In 2021, we saw 5.4 million applications to start a small business, and that was up 50% from two years earlier,” Sussman said. He believes that the “winners” are the entrepreneurs who focus on the basics. They find a need in the market and make sure their product is better than what’s out there. They also do a good job with marketing, particularly digital marketing.
During the pandemic, “shopping small” became a popular trend, helping many small businesses get off the ground. Small business groups, such as StayLocal, a small business alliance in New Orleans, are hoping consumers will continue to shop local. When people choose to buy from small businesses, they are reinvesting in their local community. According to StayLocal Program Manager Maryann Miller, even two or three times recirculating those dollars locally can strengthen an economy.
StayLocal supports small businesses in New Orleans by boosting their visibility with residents and tourists and educating entrepreneurs about SBA loans and grants. “Right now, we’re seeing many of our businesses get back to their baseline after the pandemic, and they’re ready to take that next step – whether it’s hiring employees or opening that second location,” Miller said.
While the pandemic has provided opportunities for small businesses to launch, small business owners are still up against inflation, and cash flow is predicted to be their biggest challenge in 2023. However, American Express is still expecting small business growth.
For small business owners, it’s essential to know where their revenue will come from in the coming months and what all their expenses will be. “Right now, it’s less about growing your top line and more about keeping your costs in line,” Sussman said.
The pandemic has shown that people can find success and happiness by taking a risk and following their passions. Small businesses are the backbone of the U.S. economy, and it’s heartening to see so many entrepreneurs taking advantage of the opportunities available to them.