We’re seeing an emergence of startups, entrepreneurs, and freelancers in the midst of a pandemic.

After a record-breaking 11-year bull market, spanning from March 9, 2009, to March 11, 2020, the longest bull-run in US history has officially ended according to The Wall Street Journal. With the financial markets plunging down all over the world, especially among G20 nations, and the Dow closing at -23.2% for Q1, the worst quarter since 1987, the global economy has once again plunged into a recession, the first since the recession of 2008. Coupled with the outbreak of the novel coronavirus (Covid-19), the unemployment levels have skyrocketed.

While unemployment levels have spiked to over 10% in many countries, including the United States, there is an unprecedented increase in entrepreneurial activity.

Amidst a pandemic and a global recession, this phenomenon may come across as a surprise to you; however, we have seen this before during the 2008 recession where a new generation of entrepreneurs “are choosing to take a risk and launch their own business.”

This is because of two keys factors: crisis response and changing perceptions

Response to a global pandemic

The Covid-19 pandemic has undoubtedly left no one unaffected. With Fortune 500 companies laying off thousands of loyal employees to over 74% of startups reportedly having to terminate full-time employees, the economic outlook remains dismal for business owners, employees, and job-seekers.

Yet, there is a surge in entrepreneurial activity.

The recession and coronavirus pandemic has put many companies and small enterprises out of business; however, it has also simultaneously created a much-needed gap in the market for new products and services. As a result, startups and entrepreneurs are quickly responding to the crisis by innovating and creatively formulating solutions for the market.

Startups are rapidly emerging as a result of the pandemic. From startups, such as Colivery, which connects paid volunteers to people that need food, medical and essential supplies, to VoiceMed, a startup that created a software for using your phone as a pre-diagnostic tool for testing COVID-19 at home, entrepreneurs are quickly devising solutions to address the market needs.

Furthermore, governments around the world are also beginning to support entrepreneurial innovation through the provision of financial aid. For example, in the United Kingdom, the government has launched a $1.6 billion relief package designed to drive innovation and support startups.

Therefore, the health and economic crisis has become the new breeding ground for rising entrepreneurs.

Changing perceptions

Inaddition to crisis response, the recession has also cultivated a shift in the mindset of new graduates, employees, and job-seekers. Where the job market was once perceived as offering stability, young millennials have now begun to lose confidence in the promised land of job-security and shift towards pursuing entrepreneurial ambitions or become independent freelancers.

The coronavirus-induced recession has illustrated to millennials that they could be laid-off at any point in time, by which their main source, or only source, of income will be gone. Instead of relying on one source of income, young people are now shifting their mindset towards taking up side-hustles, performing freelance work, or starting their own businesses.

According to Freelancer’s “Fast 50” report, “Freelance job openings increased over 25% during the April to June quarter of 2020 — compared to the first three months of the year.”

Furthermore, with the world transitioning their labor force from physical offices to remote-work, there is indeed merit for these changing perceptions. According to Forbes, businesses are now also changing their perspectives on hiring, in which they report “47% of hiring managers are more likely to hire independent professionals since the COVID-19 crisis than they were in the future.”

Therefore, companies and startups will increasingly seek freelancers to contract out their work in the future because of the added flexibility and cost-savings.

As 45% of businesses have stopped hiring and 39% have terminated employees, according to the Future Workforce Report, now may be the best time for young people to pursue their entrepreneurial ventures or begin their career as independent freelancers.

The changing perspectives from both young millennials and businesses represent a unique opportunity for entrepreneurs, startups, and freelancers to thrive.

Final thoughts

While we cannot be certain of what the future holds for us, we can be certain that our world will not look the same once our economies open up again.

For one, businesses may no longer have physical offices and instead rely on employees working from home or contracting out to independent freelancers. Additionally, our markets will inevitably be filled with new, rising startups and small businesses providing much-needed innovative products and services to our society.

While the ‘new normal’ is uncertain, our fate is in our own hands. Whether you are employed or unemployed, it is up to you to take action and pursue your dreams.

My name is Songlarb (Deejai) Riangkrul, I am an Entrepreneur, Digital Marketing Consultant, and Business Coach passionate about helping people reach their full potential.

I write about productivity, self-development, startups, and entrepreneurship. To join my exclusive Entrepreneur’s Newsletter, subscribe here.