One of the most important pieces of economic data is applications for small businesses. It reveals many things about the current and future economic climate. It normally increases during times of job loss, but growth during the pandemic has been extraordinary--nearly doubling this year. It may tell us many things, that more people lost work than employment statistics reveal and many Americans are forming their own businesses. Or it could be the ability to work from home has unleashed a wave on new businesses. It is also notable how much of the new business formation has occurred in the south and west, perhaps that is where the new jobs will be.
Entrepreneurship was on the decline in the last few decades. Perhaps the pandemic has brought it back to life, and with it innovation and more dynamism.
Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.
Interested in real economic insights? Want to stay ahead of the competition? Each weekday morning, e21 delivers a short email that includes e21 exclusive commentaries and the latest market news and updates from Washington. Sign up for the e21 Morning eBrief.
Photo by FG Trade/iStock