Spike in entrepreneurship fueled by COVID-19 pandemic, experts say

Some employees are quitting their jobs and deciding to be their own bosses at record rates; experts said entrepreneurship is reshaping the job industry.

Stacey Leach, Minnesotan, explained she started her own physical therapy business to empower others to feel their best.

“You know when you get to be a part of that, you’re changing someone’s life. It’s meaningful,” Leach said.

She worked as a PT in a clinic for ten years, but she said the pandemic sparked change.

“It just became stressful on our family trying to figure out childcare pickup and centers closed a little early to do cleaning,” Leach said.

She needed a flexible schedule so she quit her job in January of this year and started her own business called "Empower You Physical Therapy and Wellness."

“I’m sticking with it,” Leach said.

Experts said for the last four decades, entrepreneurship was not popular, but the pandemic changed the narrative.

“It ticked up considerably and last year was up almost 25 percent nationwide in terms of the number of businesses that were formed,” John Stavig, U of M Gary S. Holmes Center for Entrepreneurship managing director, said.

When the pandemic hit the U.S., job offers stopped, the economy hit the brakes and employees worked from home.

“Certain groups of workers clearly want the flexibility that comes with either working remotely or working for themselves,” Stavig said.

Stavig said the new work climate gave people time and resources to get their own ideas off the ground.

“Now it seems like everyone is resigning or changing jobs,” he said.

He explained the pandemic fueled a spike in entrepreneurship and it’s reshaping the job industry, changing where and how people work.

“I think that probably the bigger long term shift is that people have figured out how to work remotely and how to work much more independently,” he said.

Entrepreneurship experts said since expectations are changing in the workplace, employers may have to switch up their strategies to attract more workers.