How the Pandemic Inspired a New Generation of Entrepreneurs

The COVID-19 pandemic created a unique batch of startup companies. These entrepreneurs saw an opportunity in the midst of a narrative around small business struggles and took a leap during a period of heightened uncertainty. Our survey tried to understand what inspired this group of founders and what drove them to launch a business during that period — we’ve shared our findings in the following report.

Take a look at what’s inside

1. The Choice to Start a Business

The pandemic opened new doors for people to start their own companies and turn their ideas into viable businesses. Many founders tapped into their creativity and came up with pandemic-based solutions; others started businesses in the wake of furloughs and layoffs. Fifty-six percent of entrepreneurs said now is a better time to start a business than before the pandemic.

2. Who Are These Startups, Really?

Many startups founded during the pandemic are still in their early growth stages. They have fewer than five employees—many are one- or two-person businesses. They come from a variety of industries, though the majority sell to consumers rather than to other businesses.

A third of startup founders started “essential” businesses during the pandemic.

3. Progress and Planning

As these businesses hit their first-year milestones, their founders are looking to the future. This includes changing business models to accommodate life post-pandemic and potentially investing in brick-and-mortar locations. On the other hand, some entrepreneurs are opting for purely digital-native companies without a physical location.

4. Funding

Money was a source of worry during the pandemic. Both businesses and individuals worried about their incomes when states went into lockdown.

However, funding concerns didn’t stop this batch of entrepreneurs. They pulled from their own funds to get started and worked with private lenders and personal connections to get money. Just over half of survey respondents funded their business with less than $10,000.

5. Technology

Many established companies needed help adapting to digital work-life arrangements during the pandemic. Many new companies, however, were born digital, and their founders leveraged technology from the start.

Seventy-seven percent of respondents said companies founded during the pandemic are more technology-based.

6. The Future is Bright

Many companies have already acquired customers and have plans to bring on more. There were already a few respondents who said they had more customers than they can handle.

More Resources



The Beginner’s Guide to Starting a Small Business


6 Business Metrics That Matter For SMBs


How to Attract Customers to Your Small Business


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