(Newswire.net — March 24, 2021) — According to WWMT, Michigan has averaged 4000 new business filings a week during the pandemic. The numbers are staggering, given how many other states are struggling to see their business growth rates rise. Several factors may have contributed to Michigan seeing this massive rise in the number of new businesses registered. The pandemic has a negative effect on businesses, both small and large. Throughout the country, lockdowns have seen companies shut their doors and retrench untold numbers of workers. Yet this sign from Michigan suggests that the economy may be on its way to a solid recovery.
A Business As An Alternative To a Job
The increase in the number of new filings might signal that entrepreneurs are feeling daring, but it could just as well be a sign that workers are looking for some relief. In 2008, new businesses’ formation was typical for people who lost their jobs during the last great global recession. These professionals struggled for a while and decided to open their own business, offering services and products to others. Contraction within the economy saw many of those new businesses fail, raising a few red flags about Michigan’s current business growth. Many of those entrepreneurs have gone on to grow their businesses many times over. Michigan may be seeing a resurgence of this individual spirit in its private sector, and it’s something that it can use to help itself weather the storm.
Necessary Support Systems Should Be Put in Place
If these new business registrations are indeed due to professionals attempting to deal with unemployment from the pandemic, they’ll need help to do so. Small businesses are formed sometimes due to the initiative of their owners in seeking out a new space, but the opposite may be true for those borne out of an economic downturn. At this point in time, the individuals who start businesses see it as a viable alternative to seeking out employment in a challenging market. The numbers may indicate that many locals are interested in creating their own companies because of ideas they got while in lockdown. However, there’s no telling how many of those new filings are from individuals that are just out of options. In either case, without the right support network, these enterprises may be doomed to failure before they ever get their legs under them.
Thinking Positive About New Businesses
While the local authorities would enjoy attracting more external investment, the Small Business Association of Michigan knows that it needs to start from its own homegrown enterprises. Michigan itself has several benefits to businesses that want to set up in the area. The state is among the top five rated for engineering and physical science workers, as well as workers comp and business tax burden, making it an attractive location for some types of business. Local corporate news may lead to more companies considering the state as a viable spot to set up a new business in the future. However, only time will tell if those businesses registered during the pandemic will be successful.