Despite pandemic, Ohioans started more new businesses in 2020 than any other year

(The Center Square) – In the midst of a pandemic, stay-at-home-orders, curfews and other restrictions, Ohioans created more businesses in 2020 than any other year in history.

Ohio Secretary of State Frank LaRose recently announced more than 40,000 new businesses opened in 2020 than in the previous record year of 2019, saying he believes the economic struggles led to dreams being followed. New business filings totaled 171,073 in 2020.

“People have been facing adversity in creative ways by starting a new business,” LaRose said. “Maybe they decided that this was that time to embrace that dream they have had for many years to have that work-from-home business or to have that consulting business. Those were the kind of things we were seeing.”

December’s new business filings jumped 51% compared with December 2019, and LaRose expects to see more new businesses begin.

“We thought, like a lot of people, we would see these numbers drop off in March and April when the pandemic began,” LaRose said. “We certainly know that these numbers aren’t a perfect economic indicator, but they are a sign of optimism. So I think these numbers will continue at a steady pace.”

LaRose also believes news business filings match with new job creation numbers over the course of time.

Ohio’s unemployment rate fell from 5.7% in November to 5.5% in December. The number of unemployed workers in Ohio was 315,000 in December, down from 328,000 in November.

The Ohio Department of Job and Family Services said the total number of jobless claims filed in the state over the past 44 weeks was more than the past five years combined. Nationally, the unemployment rate was unchanged at 6.7%.

In Ohio, the wholesale and retail trade hired more workers during the holiday season and ended the year with more jobs than in the previous year. The manufacturing of non-durable goods sector also increased jobs over past year.

Leisure and hospitality sectors continued to struggle, however, along with the government sector. Combined, those sectors finished the year with nearly 180,000 jobs less than the previous year.

“We know that a large percentage of Ohioans work for small businesses, so there is nothing small about a small business,” LaRose said. “These enterprises that are beginning today, maybe they are a sole proprietor right now, but maybe in a year they are going to need to hire somebody to bring in some extra help, and maybe next year they are going to have to hire a couple people more. So I think that’s the kind of thing that bodes well for the future.”

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