The last two years were tough for founders. The pandemic made it difficult for idea drivers to implement their ideas and concepts. Lockdowns and a lack of funding possibly crushed their dreams of owning small cafés or cozy stores in the city center. However, one thing became increasingly important for start-ups during the pandemic: Digitalization.
Jumping on the Digital Train
The pandemic particularly affected certain industries, such as tourism and retail. It is no surprise, then, that startups in this area gained little popularity during the pandemic. However, giving up is out of the question for many future founders. The participants in the IONOS SE study from 2022 gave us a firsthand insight to founding behavior in times of a pandemic. One fact came out irrevocably: Getting onboard with digitalization is the most important criteria for Americans when starting a business. The participants of the study stated that having an online presence as a founder is more important since the pandemic.
Digital Businesses Are the Winners
Some founders shifted their original business ideas and instead switched to centering their ideas on the internet. For 19% of the participants, the pandemic encouraged them to rethink their business plans. In addition, some said they would even start up in a completely different industry because of the pandemic. More than 18% preferred to start a fully remote business model. It seems that digitalization had a push forward.
Success Comes with Digitalization and an Online Presence
Make or break a brand: 42.7% of Americans under 29 stated that they want support when creating and maintaining a website, despite the younger generation being the most tech-savvy! However, this is down to their views. The younger participants believe that having an online presence contributes to the success of their future businesses. This is also why they put more importance on having a digital business model.
Additional Discoveries from the IONOS SE Study
The pandemic not only made the topic of digitization more important. Other trends became clear, including rural small businesses and the impact of COVID-19 on female start-ups. For many, the pandemic strengthened the desire for Americans to make the switch to self-employment. Yet why is it so hard for Americans to start their businesses? What are the biggest obstacles for start-ups and just how satisfied are US citizens with their current jobs? The study from IONOS set out to find answers.
The “Entrepreneurship in America” study also explored:
- Job satisfaction among Americans;
- Reasons why Americans often find it difficult to set up their own start-ups;
- The areas that Americans want support with when starting up;
- Reasons why founding can make you happy;
- With whom Americans most like to start a business;
- Americans that have it the hardest when founding; and
- The role of sustainability when starting up a business.
