CLEVELAND — It's a trend you've likely seen taking shape in your community: more small businesses setting up shop.
The stats I found surrounding the increase speak volumes.
Since the pandemic, there's been a "Boss Boom."
A record 5.5 million small business applications were filed just last year as more Americans make the leap to work for themselves and open that store or restaurant they've always dreamed about.
"Small businesses represent the heartbeat of this country with over 33 million small businesses, and they represent about 46% of the total employee base," said Brett Sussman with American Express.
As for the areas driving the largest number of new business applications? They include accommodation, food services, retail, and health care.
What I find so fascinating is that this record number of small businesses, many of them in Northeast Ohio, opened during the pandemic and spike in inflation.
I caught up with one business owner in Cleveland's Gordon Square neighborhood to get her take on the trend and what it's like working for herself.
In a space that embraces the past, Olivia Deiyamu is feeling quite confident about the future.
"I feel like we opened at a time where there was a lot of new business, a lot of new businesses coming in," said Deiyamu.
Deiyamu joined forces with two other women who, like herself, sell vintage clothing.
"We've all been operating our businesses through more temporary means like pop-up events, online stores," said Deiyamu.
While coming off a pandemic and rising inflation might have deterred some, Deiyamu and her partners were all in and decided to open a brick-and-mortar location.
The three women opened the doors to Slow Union in Gordon Square back in late 2022, securing their place in the historic "Boss Boom" movement.
We know COVID-19 changed the way how many people work, and even what they were willing to put up with on the job.
"People kind of seeing how employers were treating employees," said Deiyamu.
Deiyamu said that pushed a lot of dreamers to take a chance on themselves.
"Knowing that all the hard work that you're doing, like it's for you and like for the betterment of this thing you are passionate about," said Deiyamu.
"So, it makes those like late night, early mornings so much easier to handle for sure," said Deiyamu.
Sussman told me it’s not surprising to hear just how many small businesses are starting up in the current economy because he finds small business owners to be a very optimistic bunch.
Sussman said it has never been easier to start a small business, but it's actually never been harder to maintain a successful one.
"It's a great time to be a small business owner, but you really have to understand you know, your revenues and your expenses these days due to the volatility out there," said Sussman.
A recent survey by American Express shows one-third of small business owners want better tools to manage their cash flow.
"40% said to us they're passing up on growth opportunities because it often comes in the form of I have to pay money upfront and then people are going to pay me 90, 100, 120 days later," said Sussman.
With strong headwinds continuing for small businesses, Deiyamu said reasonable rent and being smart about their pricing will help them not only survive but thrive.
I asked her how she was feeling when she looked at the next year and a half, two years.
"I can't imagine not being here," said Deiyamu.
However, there is a stark warning about this "Boss Boom."
The long-term outlook for this trend is a bit bleak, with about 50% of the new businesses not expected to make it past the first five years.
