startups grow, but the future is still uncertain | News, Sports, Jobs
Data from the US Census Bureau reveals that entrepreneurs applied for federal tax identification numbers to register 4.54 million new businesses between January and October, up 56% from the same period of 2019.
According to the Wall Street Journal, that was the highest number on record since 2004.
In a recent article, the Journal said two-thirds of tax ID number requests were from companies that should not be hiring employees.
“Workers are quitting their jobs en masse to become their own bosses” was the title. However, the article did not delve into the questions for the shorter and longer periods.
These questions include:
¯ How many – or what percentage – of the new generation of well-meaning entrepreneurs are likely to fail in their endeavors within a year or two, or perhaps sooner?
¯ What percentage might we expect him to return to work for another boss in five years, perhaps after giving up promising and lucrative careers without fully realizing the challenges “go it alone” would present?
Close to home: where is the local region in the global landscape presented by the Journal article? Specifically, how many regional business ventures starting up now will fit into the image of failure the Journal article left open for personal contemplation and speculation?
Obviously, places the size of Jamestown, Dunkirk and Warren are not going to supply a large number of new entrepreneurial startups. But our two-state region is part of the national startup statistics, and one day it will have to join the rest of the country to find ways to deal with the number of business failures to come,
According to the Wall Street Journal, “This year, the share of American workers who work for a company with at least 1,000 employees fell for the first time since 2004, according to data from the Department of Labor. Meanwhile, the percentage of American workers who are self-employed has reached its highest level in 11 years. In October, they represented 5.9% of American workers against 5.4% in February 2020. “
Until the end of the 19th century, most Americans worked for themselves. The evolution of new technologies has changed that; many people opted for the workshop, landing in an environment of tightly defined working hours and what the Journal described as “Hierarchies” – workers supervised by managers supervised by executives.
Fast forward to the pandemic, which has caused many people to reassess their vision for the future, with many opting for a life in which they are more in control of their destiny.
Unsurprisingly, even many expert observers never envisioned the rate of new business start-ups this year. This is clear from the Journal’s attention to the topic which included interviews with people who ended their professional careers in favor of self-employment – running their own new start-ups.
While the stock market occasionally experiences “Corrections”, it seems likely that there will also be corrections to the new business boom.
It’s unclear how much such a fix will impact places like Altoona, Johnstown and Huntingdon at this time.