More prospective new businesses were formed in 2020 than ever before

More prospective new businesses were formed in 2020 than ever before
Baboonie Tatum, owner of the Rise and Grind Cafe, poses inside her coffee shop in Milwaukee, Wisconsin.Kamil Krzaczynski/AFP via Getty
  • Bloomberg reports that the number of prospective businesses filing formation paperwork was almost a quarter higher in 2020 than 2019, citing a Census Bureau analysis of federal tax documents.
  • While paperwork initially dropped after lockdowns began in March, it began to pick up in June.
  • University of Maryland economist John Haltiwanger told Bloomberg that 2020 had the "highest annual total on record."
  • Some may be creating businesses after losing a job: Over 10 million Americans are unemployed, and the unemployment rate in December was 6.7%.
  • Small businesses have found themselves in a tough position as bigger businesses boom, but the rise in new business formation — and the possibility they'll bring in new employees — is promising.
  • For those looking to start a business right now, industries like fitness equipment, contactless food ordering, and educational technology are all strong bets.
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