Entrepreneurs deserve to be celebrated. They create jobs, drive innovation, and work hard to fill markets—whether locally or globally—with fresh and often groundbreaking businesses that fuel the economy. As the U.S. Small Business Administration reported, small businesses created 1.6 million net new jobs in 2019. So, for World Entrepreneurs' Day on August 21, we wanted to celebrate all the enterprising makers, movers, and shakers out there, and highlight one of the biggest perks of working for yourself: happiness.
Why Entrepreneurs Are Happier
According to a recent study in the Journal of Business Venturing, self-employment is tied to higher levels of well-being, largely because entrepreneurs find their work to be more meaningful. The study identified three psychological outcomes that are tied to that sense of well-being:
- Purposeful engagement with life.
Entrepreneurs have more autonomy in their work and home lives. Instead of adhering to the needs of a boss or working towards someone else's dream, they can create their own schedules and decide how to spend their time.
- Greater use of their talents.
Small business owners can build companies around their unique capabilities and interests, making better use of their strengths and passions.
- Resilience in adapting to challenges.
Being an entrepreneur isn't easy, but it is rewarding. Successfully making it through those late nights, pitch meetings, and periods of financial uncertainty can build character and confidence. These findings line up with Guidant Financial's 2021 Small Business Trends report, which outlined the top reasons people open their own businesses in the first place:
- To be their own boss
- To escape corporate America
- To pursue their passions
Finding opportunity in challenges
Even during the pandemic, people turned to entrepreneurship. The Wall Street Journal reported that the number of entrepreneurs who started a small business increased 12% from 2019 to 2020—reaching a 13-year high. By September 2020, more than 3 million people had applied for employer identification numbers. While many small businesses also suffered and closed their doors due to COVID-19, consumer spending increased across key categories like health & personal care, and food & drink. As Guidant Financial found, two of the top five small-business industries are food & restaurants and health, beauty, and fitness services. Efforts to support local retailers and community resources grew during the pandemic as well. According to Nextdoor, 72% of consumers said they would frequent local businesses more often after the COVID-19 crisis. These factors have helped contribute to a boom in startups. WorkPass customer, Ben, started a coffee shop in the middle of the pandemic. He notes that "if you want to be a part of a change in a community, one of the best ways to do that is to be a small business. [Our] coffee shop has become a hub in our community. A place for people to work and meet, and to feel welcome."
Supporting what's next
Despite the many challenges of entrepreneurship—and the struggles they faced during a global pandemic—small business owners continue to prove their resilience. In the face of adversity, they keep putting in long hours and taking necessary risks for the promise of even greater rewards: happiness, autonomy, well-being, and personal satisfaction in their work. Our customer Ben believes that "the best days can be ahead for any community where the people are willing to make it so. That's a big part of why we wanted to open a business." In celebration of World Entrepreneur Day, and to help other small business owners like Ben in this challenging environment, Plume will provide up to three SuperPods for free to all new WorkPass members through September 1, 2021. Learn more at plume.com/workpass.
Following an atypical year, 5 small business trends for 2021
Plume Marketing Team