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July 29, 2021 SHARE
There’s growing evidence that the COVID-19 pandemic spurred a small business boom. In May, the National Bureau of Economic Research found that small business rose 21% in 2020, compared to the prior year.
Even in the best of times, though, launching a successful small business is challenging. About 20% of U.S. small businesses fail within the first year, according to data from the U.S. Bureau of Labor Statistics. So, starting a small business during a global pandemic may seem especially risky.
MacDonald
However, recent developments such as changes in the labor force may play to small businesses’ advantage, according to Glenn MacDonald, the John M. Olin Distinguished Professor of Economics and Strategy at Olin Business School.