The United States is seeing a surge in entrepreneurship, with certain industries fueling the surge at a time when Covid-19-related unemployment is rising. This resulted in Deluxe, a provider of technology solutions that help businesses operate more efficiently and accelerate growth. Deluxe serves 4.5 million small businesses.
According to Deluxe, the demand for small business startup services increased 10% in 2020 compared to 2019. Deluxe identified the specific industries that drove the rise in small business creation.
8 industries drive the upswing of new companies
Real estate is the leading industry for new businesses emerging after the pandemic. Real estate is followed by construction work, then trucking and cleaning services. Selling online is the fifth most sought-after industry for people starting their own business. Consulting, food trucks and landscaping follow.
By highlighting the sectors entrepreneurs turn to, Deluxe’s analysis could inspire entrepreneurs to choose an industry that is likely to be successful. Real estate, for example, has refused to be derailed from the pandemic. The industry’s “survival” depends on historically low mortgage rates coupled with a shift in the way people use their homes. As the Deluxe report confirms, starting a real estate company could be a smart business move in the current climate.
Barry McCarthy, President and CEO of Deluxe, commented on the escalating race for entrepreneurs to start their own business.
“Small business owners are starting new ventures and careers in the middle of a pandemic. We believe that the increased use of deluxe startup services is a leading indicator of the future of small business and shows optimism in the small business market through 2021. These entrepreneurs risk everything, even in such uncertain times. Deluxe has proudly supported the incredible pioneering spirit of small business owners for 105 years, ”said McCarty.
Construction drives small business startups
Construction is currently hailed as the second largest business start-up sector in the United States. Construction is an important contributor to the US economy. Despite the disruption from Covid-19, the industry remains a major player in the economy, especially in a thriving real estate market. Business projects in the construction industry are therefore considered lucrative and in demand.
Growth in the truck industry
The surge in online shopping popularity after the pandemic has contributed to the growth of the trucking industry. As a result, trucking is another sector that entrepreneurs turn to to start their own business.
Cleaning companies are considered lucrative
The fourth industry that is fueling the rise in entrepreneurship in the US is cleaning services. Cleaning companies are easy to set up and do not require a large investment. There are an abundance of cleaning companies out there helping entrepreneurs build a successful cleaning business.
Optimism in the small business community
Deluxe’s analysis not only reveals the “most pandemic-proof” industries for aspiring entrepreneurs, it also shows that small businesses in the US are optimistic. Despite economic downturns and uncertainties, entrepreneurs are not afraid to experiment and take risks to weather the Covid-19 storm and start their own business.