FRANKFORT, Ky. — Despite financial hardship, there has been a surge of new business in Kentucky during the pandemic. That's according to a new study from the National Bureau of Economic Research.
What You Need To Know
- A national study found there has been a surge of new business during the pandemic
- Kentucky was one of eight states studied
- More people in Kentucky were applying for new business licenses during the pandemic
- Researchers can't directly connect the stimulus measures with the growth in new business but say the timing and rise are stark enough that it's unlikely to be a coincidence
The National Bureau of Economic Research study looked at business records from Kentucky, Georgia, New York, Tennessee, Texas, Vermont and Washington for all of 2020 and the first part of 2021. It also looked at Florida for all of 2020.
What the study found is that more Americans, including Kentuckians, were applying for new business licenses during the pandemic. The report notes that is different than what the U.S. saw during the last recession.
While it's unclear what was driving this trend during a time of economic uncertainty, the study noticed applications shot up around the time the second stimulus deal was signed. The data showed that to be the case in Kentucky as well.
The researchers said they can't directly connect the stimulus measures with the growth in new business, but say the timing and rise are stark enough that it's unlikely to be a coincidence.
The study does not break down the license requests by specific industries, so it's unclear what type of businesses are on the rise. What it did find is that the new businesses are being formed as LLCs and partnerships. That means it's small business driving the trend, as opposed to large companies.
Spectrum News 1 has reached out to the Kentucky Chamber of Commerce for insight on what types of new businesses were forming in Kentucky during the pandemic. We will update this story with that information when it becomes available.