How Working from Home Can Transform Entrepreneurship

COVID-19 led to a massive surge in working from home (WFH), rising from 5% of full workdays before the pandemic to roughly half during the pandemic and likely around 20% after the pandemic ends. The shift will remain because it saves commuting time, boosts productivity, and raises well-being for many workers.

The extraordinary WFH shift provides a unique opportunity to boost entrepreneurship and promote human flourishing with faster growth and less inequality.

Business formation has surged during the pandemic, particularly in sectors where remote work is more accessible. WFH offers an opportunity for increased entrepreneurship that spreads wealth-generating activities more evenly across the US, mainly to lower-income rural areas. It could also boost entrepreneurship among minorities, who may have less access to formal labor markets and business networks.

A project led by Nicholas Bloom in the Department of Economics at the Stanford School of Humanities and Sciences will build a significant new dataset, surveying 5,000 Americans per month over two years, collecting data on business creation, expansion, reorganization, product mix, remote work, and more. As the only survey focused on the connection between WFH and entrepreneurship, the resulting data will provide a unique resource.