Entrepreneurs assemble: The pandemic isn't stopping entrepreneurs — quite the opposite in fact

2/16/21 7:00PM

The entrepreneurial spirit is alive and kicking. New businesses are being formed at a phenomenal rate ever since the pandemic gripped the US in the middle of last year. Data from the US Census Bureau reveals that there were more than 4.25 million new business applications last year, up more than 20% on the year before. The data for 2021 so far is even more impressive — with more business applications being filed so far than any year that's been tracked since 2006.

‍Never waste a crisis

‍Never let a good crisis go to waste were famous words supposedly said by Winston Churchill — and often echoed now by many entrepreneurs. With much of our economy in upheaval new sectors, products and services are cropping up at an astounding rate and if you are an entrepreneur starting a company during this recession, it's hard not to be inspired by some of the successes from the past. The last major global recession saw Uber, Airbnb, Slack and WhatsApp get started — to name but a few.

‍Why is now a "good" time?

‍It's a bit counter-intuitive for people to take more risks when the economy is in such dire straits, but there are a lot of reasons to support why we're seeing this:

New work paradigm. Offices and office space will change forever — and that means opportunities for physical and digital products (collaboration software, home office desks etc.).
Funding is available. We might be in a recession, but venture capital funding is still widely available, and was actually up 13% last year.
Time. Furloughed workers, or those with reduced hours, may now have the time to turn that side-hustle or side-project into a more substantial venture.
Necessity, the mother of all invention. Lost your job? You may not have much choice but to start your own company and try and go it alone.

Max Knoblauch10h

American Airlines joins the flock, hiking bag fees amid higher jet fuel prices

American Airlines on Thursday announced that it, too, will be hiking the fees it charges customers to check luggage.

With the move, all four of the major US airlines, which together control about 80% of the US market, have now hiked their baggage fees in recent days amid surging jet fuel prices.

The change will go into effect on tickets bought on or after Thursday, the same day Southwest’s hike begins.

Since late March, JetBlue, Delta Air Lines, United Airlines, Canada’s WestJet, and Southwest have hiked their fees. Experts expect more major carriers to follow, and to potentially tweak the pricing of other ancillary revenue sources like seat assignments and carry-on luggage.

American Airlines updates bag fees and Basic Economy fares

The change will go into effect on tickets bought on or after Thursday, the same day Southwest’s hike begins.

Max Knoblauch11h

Less than a year after implementing them, Southwest is also hiking its bag fees

Southwest Airlines has joined the growing list of airlines opting to hike their bag fees amid sustained higher jet fuel costs.

Starting today, the first checked bag at the carrier — which implemented bag fees less than a year ago — will jump from $35 to $45, and the second from $45 to $55. Southwest quietly disclosed the change Tuesday.

Southwest assigned the decision to “part of an ongoing analysis of the business and against the evolving global backdrop.”

As of Wednesday, jet fuel prices dropped to $4.16 a gallon, per the Argus US Jet Fuel Index, down from $4.81 on Tuesday following President Trump’s ceasefire announcement, which sent travel stocks soaring. Major airlines have shed some of those gains in premarket trading Thursday.

With the move to hike bag fees, Southwest joins JetBlue, United Airlines, Delta Air Lines, and Canada’s WestJet, all of which also boosted fees this month. Experts expect more major carriers to follow, and to potentially tweak the pricing of other ancillary revenue sources like seat assignments and carry-on luggage.