The current pandemic has taken a toll on the existing businesses massively, but it has also paved the way for aspiring entrepreneurs. In fact, the boom in startups has surpassed last year’s indications. According to a Financial Times report, in July 2020, the number of applicants for start-ups in the United States reached an all-time high, making it an increase of 95% compared to 2019. The rapid growth in the businesses has led to companies now achieving yearly projections in just a matter of weeks. This surge in new businesses is due to laid-off employees now finding their own businesses and the digital adoption of existing businesses.
Covid-19 restrictions forced people to move from a brick and mortar model to applying more creative and viable solutions to meet the consumer’s evolving needs. Businesses are said to be adopting new purchasing habits that revolve around time-saving, safety, and convenience. Digital spending is the new normal and is to be continued even when the situation goes back to normal. Consumer spending, however, is majorly in healthcare, housing, food, education, fashion, and travel. The highly digitizing industries include; entertainment, apparel, grocery, and telecommunication, and most of the new tech startups are related to telecommunication and biomedicine.
Some businesses coping up with the online trend are offering specialized services specifically tailored to the industry. Real estate is a great example of attempts at digitization over the course of 2020 for areas that were previously based solely on offline sales. Property viewing has been moved to the digital platform, and in the future, many other areas can be seen being diverted online.
Even though the pandemic has hit various business sectors and led to some of the worst shutdowns, it has also created an opportunity gap for startups offering new products and services tailored specifically to the current needs and demands. It is high time existing businesses start focusing on providing virtual solutions and promptly responding to the massive increase in start-ups by offering new products like a virtual fitting room, for instance, to keep being in business. It is also vital for startups to think long-term while acting short-term by catering to current needs and at the same time planning for future needs.