2021: Year of the New Business Start-Up

Over the last decade or so, we have seen an upsurge in the number of newly registered businesses. This is due to a few trends and changes in employment practices. We have seen a steady decline in the average wage, with lower salaries and more part-time and casual contracts preferred by many employers. We have also seen a rise in the 'gig economy' where positions often lie somewhere in a gap between employment and self-employment. The classic example is the courier driver, who delivers parcels on behalf of a large courier firm but is not an employee of said firm. For tax, they register as a self-employed subcontractor, responsible for their vehicle, performance, and taxes. But they are still subject to the performance levels of the parent company, and in this way, are closer to an employee.

The Legacy of 2020

It would be patronizing of us to spell out what happened in 2020 to change the business landscape going forward. We all know of the Covid-19 coronavirus that has changed every aspect of our lives beyond all recognition. We have seen record numbers of new businesses arriving. Some will have been ideas that people have finally had the time to implement. While others will have felt left with no other option, finding jobs scarce on the ground following unprecedented levels of redundancies. These newly self-employed could be starting a full-on company, or just looking to make a bit of extra cash from home.

What Types of Business

There has been an increase in businesses working from home, not on traditional premises, due to the limitations on meeting individuals face to face. This has become possible due to many technological advancements in recent years, such as video conferencing, online project management, and cloud storage solutions. These developments lend themselves to advisory or tutorial services, teaching, and tutoring online are so easy to do, and your target audience is pretty much world-wide.

Support Services

All of these new businesses require support and assistance. Another area that is flourishing is any area that supports new business owners. Accountants and business plan writers are doing well. Those who provide design services such as web design, SEO (search engine optimization), and promotional services have .seen a business doing well. Other sectors flourishing will sadly include debt collection services

The Future

It will be interesting to see if the trend towards business start-up and self-employment will continue in 2021 and beyond. As we have discussed, the events of 2020 have made serious and potentially long-lasting changes at a societal level. This may mean a change in government policy, placing more emphasis on science and healthcare, creating many jobs. If we go back to the office and employment booms there will be a greater need for child-care and even pet-sitting and dog walkers. Whichever way the economy ends up turning, there is always going to be a need for a mix of employment and entrepreneurship to create a financially healthy nation.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes