Mary: I’m Mary Walden, with economist MW, welcoming you to the economic perspective. Today’s program looks at the surge in new businesses. Mike, I would expect that pessimistic times in the economy would not be a time to start a new business. Am I right or wrong?
Mike: Summary Answer
- Although it pains me to say it, you’re wrong
- Applications for new businesses are expected to set a 10-year record this year
- Last time they were this high was at the start of the Great Recession
- And there’s a reason for this
- Not unusual for new businesses to surge in bad economic times
- Matter of survival – people are looking for new ways to earn a living
- Also, during bad times, the economy is usually shaken up – as today with cyber buying and delivery taking off
- Another factor for today – household savings rates are at record highs, as some have banked their government assistance payments while others have saved money they normally would have spent
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.