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Why Are New Business Formations Exploding?

Why Are New Business Formations Exploding?

Why Are New Business Formations Exploding in NC?

According to an article in the Independent Tribune, new new business creations in North Carolina are up by more than 70% since 2019, and filings for new business in 2021 set a state record at 178,300. The state did a survey and found that many new businesses were being launched by women and minorities. Some people were looking for ways to balance work and child care. Some had lost jobs and learned new skills. Some were turning a hobby into a business.

The NC trend follows a national one. The U.S. Census Bureau reports that 10.4 million new businesses were formed in 2021 and 2022 — the highest two-year total on record. But why now?  One factor is life style and how people want to live their lives as they look for more autonomy in their work.  Some speculate that the worker shortage has given individuals confidence that if a venture fails, they can find a job, especially if they are leaving an occupation that is short staffed to create a start up.

There are a lot of unknowns about this surge, especially how long it will last and how many of the startups will survive. According to the state, 25% of new businesses fail in the first three years and 50% end within seven years. As the Pineville NC Chamber has also noted in the past, one problem with people going into business on their own is that they often have passion, but lack planning.

This is where the Pineville NC Chamber can help mentor new businesses along with other programs available to young start up entrepreneurs.  Programs include the SCORE mentorship program and the Mecklenburg County Economic Development organization.  You can find a complete list of start up business resources at the Pineville NC Chamber’s website

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