Current in Entrepreneurship Blog

The startup scene is booming! New data from the U.S. Census Bureau shows a record number of business applications filed in 2023 (5.5 million) and a strong trend continuing in 2024 (over 1.7 million applications in the first four months).

Why the surge? Professor Angela Lee of Columbia Business School suggests a surprising factor: layoffs from big tech companies. With a large pool of skilled professionals now available, the opportunity cost of starting a business has decreased.

Historically, economic downturns can fuel entrepreneurship. During recessions, the cost of starting a company can become more attractive as traditional job security weakens.

Big tech has seen significant layoffs recently. Layoffs.fyi reports over 263,000 tech industry employees were laid off globally in 2023, with Amazon leading the pack (27,410). Meta, Google, and Microsoft also saw substantial reductions.

The unemployment rate remains low (around 3.7% to 3.9% in the U.S.), suggesting these tech workers aren't staying on the sidelines. Perhaps they're taking this chance to pursue their own ventures.

Are you a skilled professional considering entrepreneurship? This could be an opportune time to explore your options. Connect with your network, leverage your expertise, and see if there's a business idea waiting to be built!