Small businesses are the backbone of the American economy. More than 33 million of them operate across the country, employing more than 61 million Americans, according to the U.S. Chamber of Commerce.
A new white paper from UNLV’s Center for Business and Economic Research (CBER) shows that Nevada experienced a significant increase in small-business creation during and after the COVID-19 pandemic. While the state endured some of the nation’s deepest job losses in 2020, due to its tourism-dependent economy, the disruption sparked an entrepreneurship boom that could help redefine Nevada’s economic landscape.
"What seemed to have occurred was a mixture of government policy, such as stimulus, and the fact that we had a lot of time on our hands," CBER Director Andrew Woods said. "We all remember being indoors and not being able to socialize and go out as much as we had in the past. That combination of things seems to have really sparked entrepreneurship here in Nevada and across the country."
In particular, the state has seen substantial growth in professional services, such as law, accounting, and engineering firms. The report also noted growth in the healthcare and real estate sectors. Woods said that's a key sign that efforts to diversify the state's economy are taking root.
"These are areas that the state has really tried to diversify beyond just leisure and hospitality," Woods said. "So, seeing that the businesses that were actually employing people, and the ones that were created after the pandemic, were these key areas that we've talked about for decades of growing — it was good to note."
Woods also noted that much of that entrepreneurial growth occurred among women and the state's Hispanic community. However, he added, that growth may have stemmed from hardship. "Some ideas are that they were among the primary groups heavily hit by the pandemic, in terms of being laid off and/or having a hard time finding work," Woods said.
According to the report, Nevada ranked third in small business creation with employees in the country, behind Delaware and Wyoming.
Andrew Woods, director, Center for Business and Economic Research at UNLV
