SouthernWorldwide.com – New artificial intelligence tools are simplifying the process of starting a business, thereby fostering entrepreneurship and potentially boosting job growth.
AI can assist in drafting business plans, conducting thorough industry research, creating marketing content, designing logos, prototyping new products, and generally supporting the launch or expansion of new ventures. This is according to Chris Franco, an entrepreneur who has extensively utilized AI to grow his New York-based marketing and customer acquisition firm, Woodridge Growth.
“You can accomplish anything you can envision. There are no limitations,” he stated to CBS News. “In this era, there is no excuse for not starting a business.”
Recent data from the Census Bureau indicates a significant surge in new business formations across the U.S., reaching an all-time high. An analysis of Census data by Stripe Economics reveals that solo founders are a primary driver of this increase.
Torsten Slok, chief economist at the asset management firm Apollo Global Management, noted that AI is substantially reducing the costs associated with starting and operating a business.
“This is because large language models make it easier to write business plans, and agents can perform tasks, which likely contributes to a more dynamic economy for entrepreneurs,” he explained. “It’s becoming more accessible for experts in fields like consulting, finance, or legal services to branch out, become entrepreneurs, and challenge established players.”
Reduced Costs, Increased Speed
One of the ways AI is lowering the entry barriers for new businesses is by decreasing startup expenses.
“Are founders able to build leaner teams and achieve more with less funding thanks to AI? Absolutely,” said Angela Lee, a professor of entrepreneurship at Columbia Business School and a seasoned entrepreneur herself, in an interview with CBS News.
Lee shared an anecdote about spending $20,000 on coders to develop a website for one of her initial businesses in the 1990s.
“Today, you can use Lovable to quickly code a website in about 20 minutes using a free tool,” Lee told CBS News, referencing a popular AI coding application. “The cost of everything has gone down, and the speed has increased.”
Ernie Tedeschi, chief economist at Stripe Economics, elaborated on how entrepreneurs are employing AI to launch new ventures.
“It can help you develop a business plan, offer guidance on supply chains, and essentially do what’s needed to bring your vision to life,” he said. “It can even assist in identifying the necessary forms and help complete them before you’ve fully solidified the initial idea.”
“It helps us understand”
Albert Feldman, the owner of Sky Candle Co., a Boston-based candle company, established his business before the widespread adoption of artificial intelligence. However, he has since turned to AI for assistance with marketing campaigns, financial planning, and generating crucial analytics. This has enabled Sky Candle to operate efficiently and compete with significantly larger corporations, he informed CBS News.
“It helps us determine which products we should produce more of and which ones to phase out. We manufacture the products ourselves – the candles are hand-poured – which requires extensive financial planning,” Feldman stated. “By analyzing historical sales data, it guides us on the quantities of wax and scent components we need to purchase, and it helps us make sense of all the operational details.”
While the emergence of AI has raised concerns about potential job displacement for millions, Apollo’s Slok anticipates that it will stimulate innovation and, eventually, lead to job creation.
“If even a small percentage of the new ideas individuals conceive prove successful, they will require employees,” he commented. “This suggests the economy is becoming more dynamic, and ultimately, AI will generate more jobs.”
Lee, from Columbia Business School, holds a less optimistic view. “Founders are hiring fewer people, and unfortunately, I believe this will ultimately result in job losses.”
