The Economic Perspective: “The Surge in New Businesses”

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.