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Why Are New Business Applications at All-Time High?

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Why Are New Business Applications at All-Time High?

More people are starting businesses now than ever before — and the reason could be that the opportunity cost, or what they have to give up in exchange for entrepreneurship, is lower than ever.

Data that the U.S. Census Bureau released earlier this month shows that the total number of applications to start businesses hit a record 5.5 million last year.

That’s half a million more applications than what was filed in 2022.

Related: Here’s What Millions of Small Businesses Have in Common, According to a New Survey

Census Bureau data from the first four months of this year show that the startup boom is still going strong, too — from January through April, the number of new business applications totaled over 1.7 million.

Why are more people filing to start new businesses?

Columbia Business School professor Angela Lee told Entrepreneur that the reason could be the “unprecedented number of layoffs from big tech companies in the last several years, resulting in a large pool of talent freed up to pursue entrepreneurship.”

Columbia Business School professor Angela Lee (left) and Co-Founder of Plum Alley Investments Andrea Turner Moffitt (right). Photo by Monica Schipper/Getty Images)

Lee, the director of the Eugene Lang Entrepreneurship Center, also noted that “entrepreneurship has historically been counter-cyclical because the opportunity cost to start a company goes down during a recession.”

Related: Want to Start a Billion-Dollar Business? Look to These Two Industries, Which Have the Most Unicorn Growth

Big tech companies have been laying off employees in record numbers in recent years.

Tech layoffs last year affected 263,180 employees globally according to tracker Layoffs.fyi.

Amazon laid off the most people (27,410) last year, but Meta (21,000), Google (12,115) and Microsoft (11,158) also contributed to record numbers.

The unemployment rate has remained stable, in the 3.7% to 3.9% range in the U.S. over the past nine months, according to the latest U.S. Bureau of Labor Statistics jobs report.

Related: ‘The Employment Situation’ Report for April Shows Employers Are Taking Hiring Down a Notch, Employee Wage Growth Slowing

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Car Dealership Outages Persist From CDK Software Cyberattack

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Car Dealership Outages Persist From CDK Software Cyberattack

Car dealerships across the country are being forced to use paper forms as the auto industry looks to recover from a cyberattack that caused mass outages last week.

The attack hit CDK Global Systems, a cloud-based software that runs all back-end financials and information on car sales, financing, repairs, maintenance, and more. The company serves an estimated 15,000 car dealerships across the country.

Ford and Kia noted in statements to Reuters that some operations have been affected.

The interfaces were reportedly hit with back-to-back cyberattacks that caused dealerships to begin shutting down operations as early as Wednesday around 2 a.m. EST.

Related: Mark Cuban Issues Warning After His Google Account Is Hacked

Per Bloomberg, the group that claimed responsibility for the attack (which is believed to be based in Eastern Europe) demanded tens of millions of dollars in ransom to cease the system hack ahead of the weekend, which CDK was reportedly willing to pay.

“In the interim, we are continuing to actively engage with our customers and provide them with alternate ways to conduct business,” CDK told Reuters.

The software company is also planning to run an internal investigation and is cooperating with authorities as it works towards the full restoration of its services nationwide.

Related: GM Taps Costco to Sell Chevrolet, Cadillac Electric Vehicles

The restoration was underway by Monday afternoon, though CDK said that it estimated that full restoration would take “days” and not weeks to complete. Still, it did not give an exact estimated timeline as to when dealerships would be able to resume business as usual.

CDK did not clarify exactly how many customers were still affected by the attack as of Monday afternoon.

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This Two-Year VPN Subscription Is Only $89

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This Two-Year VPN Subscription Is Only $89

Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.

Working, watching videos, and browsing the internet should be safe and private experiences. Unfortunately, public networks are often hazardous places riddled with hackers and advertisers. That’s why an increasing number of people these days are turning to VPN subscriptions.

If you haven’t yet, it’s time to consider how much of your data and personal information you’re leaving vulnerable every time you hop on a public network.

To help you out, consider that a two-year subscription to NordVPN is on sale for only $89 (reg. $198) for a limited time only. NordVPN’s Threat Protection is one of its most relevant and helpful features. It’s designed to block advertisements and trackers that can disrupt and slow down your online activities.

NordVPN can scan URLs before you visit them and block you from visiting dangerous sites that could be threats. It looks out for things like spyware, malicious software, trackers, and more, blocking anything it deems a threat. It also keeps you secure when on Wi-Fi networks with top-of-the-line encryption.

For professionals and business leaders, NordVPN’s high-speed capabilities are also well worth paying attention to. Using NordLynx, which is the fastest VPN protocol there is, it helps you and your team members get ahead when working in the office, at home, and on the road.

NordVPN is a critical darling with a 9.3/10-star rating on VPNoverview, and a 9.5/10-star rating on vpnMentor.

Don’t spend any more time leaving you, your co-workers, or your family members browsing at risk. Get a two-year subscription to NordVPN on sale for only $89 (reg. $198) for a limited time only.

StackSocial prices subject to change.

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Invest in a Lifetime of Learning for $100

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Invest in a Lifetime of Learning for $100

Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.

What is Skill Success?

Skill Success is an online learning platform with more than 4,000 online course videos on a wide variety of topics. Entrepreneurs looking to grow their understanding of given industries or fields can come here for video courses on business, finance, technology, cooking, music, and so much more.

How does Skill Success approach learning differently?

Skill Success makes learning new topics immersive and fun with gamified learning. By giving users incentives like earning badges and showcasing achievements, Skill Success keeps making progress fun and motivating.

Are the courses easy to access?

Skill Success courses are accessible from any device, anywhere, and at any time. All that’s needed to log in and watch a video course on a given topic is a reliable internet connection. The one-time payment for a lifetime membership makes it easy to revisit when you need it without any extra worry or planning.

What if I get tired of the Skill Success course catalog?

With thousands of courses on a variety of topics, it would take a lot of time to review, let alone get tired of the content available. At the same time, Skill Success also continuously updates its catalog with new options so that you always have something fresh to learn.

Is Skill Success recommended?

It is. Skill Success has been recommended by PCMag, Entrepreneur, and CNN, among other notable names.

Invest in a lifetime of learning with this lifetime membership to Skill Success, which is on sale for only $99.99 (reg. $540), the best price for this subscription online.

StackSocial prices subject to change.

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