New research by economists John Haltiwanger and Ryan Decker indicates that the United States is witnessing an entrepreneurial renaissance across various sectors. The study, released on Friday, suggests that this surge in new businesses has been spurred by lifestyle changes brought about by the pandemic and the injection of federal stimulus funds.
The study reports a significant 30% increase in new business applications compared to pre-pandemic figures. This upsurge is viewed by John Lettieri from the Economic Innovation Group as a robust revival of business dynamism.
The research indirectly emphasizes the potential influence of President Biden's $1.9 trillion American Rescue Plan on this entrepreneurial boom. Jared Bernstein, a member of Mr. Biden's Council of Economic Advisers, argues that the Rescue Plan has fostered a supportive environment for entrepreneurs.
The study also draws a connection between these trends and reported labor shortages. It suggests that existing firms are competing with start-ups for employees, further indicating the vibrancy of the current entrepreneurial landscape.
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