An analysis by the Economic Innovation Group that found that almost 1 million applications were submitted to form new companies. According to the study, these applications occurred in rural counties in the south of the country , which represents the largest increase in the creation of new companies compared to the previous year.
The study found that this reconfiguration has to do with the fact that some companies see the change in the modes and forms of work where remote or hybrid models are already weighted as an opportunity to open up or expand in areas where rents are cheaper.
The Economic Innovation Group stated that this phenomenon is having an impact that little by little a diversification of operating points of small companies in areas that would normally be unthinkable for them to operate, since generally these types of businesses were designed to carry out their activities in large cities.
According to official data, employment in the urban centers of large cities has recovered at a rate 51% lower than in the suburbs and smaller cities. The largest gaps are found in large cities that were affected by the pandemic. So it comes as no surprise that many companies changed their model and idea of how to operate and expand.
Some companies located in urban centers are finding ways to expand to smaller cities and areas suburban markets in order to have a contact with other markets to those already traditionally known. According to a CBS report, one of those businesses is Butter &, a San Francisco-based bakery that decided to venture out to experience something different .
The 31 founder of Butter & Amanda Nguyen explained that her bakery lost much of its wedding business last year due to the pandemic . So instead, he focused on creating “quarantine cakes” geared towards smaller celebrations, such as a $ 50 cake topped with coronavirus-allusive phrases like “don’t you touch the face. ”
Nguyen explained that one of the reasons for changing their business model had to do with the fact that many people called to order cakes and that it was sent to them because they could not travel until her store, which is why that reason encouraged her to do something else that, in the end, has paid off.
This business reconfiguration can help small counties and cities make their inhabitants have a commercial diversity and employment is encouraged, but also, this situation can put large cities in check due to the flight of capital that produce jobs according to the Group of Economic Innovation.
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