COVID-10 pandemic and lockdown have been hard for many of the businesses and firms, while some of them struggled their existence. The situation has also inspired start-ups. New entrepreneurs are expected to launch after reopening.
According to the National Statistics Office data 2020, 396,155 firms closed in coronavirus.
Federation of Small Businesses predicts the launch of 250,000 new business in 2021.
Certain sectors in life suffered more than others in adapting to lockdown and lifestyle in the coronavirus lockdown, such as tourism and beauty. Some of the businesses adjusted with the coronavirus and compromised with the demand of the time.
In the last year, food delivery services show a rise with record sales due to increased demand for recipe boxes and takeaway food. People living in quarantine ordered food more often.
A pasta delivery service Pasta Evangelists noticed a significant increase in the number of their daily orders. Founder of Pasta Evangelists, Alessandro Savelli, says that their business has been grown ‘more than fivefold’ during COVID-19 and the weekly volume of the order has become daily volume due to the rise in orders.
They have hired more staff to keep up with the increasing demand and orders. The founder also says that they have tried to adapt logistically and never stopped production. They ‘buckled down’ and worked hard to complete all the orders.
The company also chose to build a ‘balanced model’ for the growth of their business. They made it to the demand of the consumers developing their product in a way that it would be consumed by the customers in different ways even after the lockdown.
Where many of the businesses faced challenges, a noticeable number of new businesses have also emerged during the coronavirus crisis in 2020. The statistics record around 407,510 new businesses emergence during this time.
Among the 2020 start-ups during coronavirus is Tasty Mates, a sweet company. It is based in Hertfordshire. The founders of this company Joe Woolf and Nick planned to hold their official launch of the business in the Autumn of last year, they were working on their business two years ago.
Joe Woolf says that he left his job for this start-up just before COVID-19. Then the pandemic hit, but couldn’t stop us. They get a little slow but carried on. They were not worried about meeting their friends and restricted to socializing rather focused on their business and its growth during the restrictions. They utilized the time to plan everything that would have rushed in an otherwise situation.
Director of Policy and Research at the Centre of Entrepreneurs, Matt Smith, says that the rise in start-ups is “a trend” likely to be continued. Many entrepreneurs got the opportunity for the first time and utilized it for a start-up. He adds that where a lot of businesses shut down, the number of start-ups is also unmatched.
Wednesday’s budget also announced measures to support the business. The restart grants for the closed business up-to £6000 will be for the non-essential business and up-to £18,000 for personal services and hospitality.