Starting a Business in a Down Economy
There are many of us at the Small Business Development Center who believe that this is a good time to start a business. While it certainly is not a great time to get a bank loan for working capital, there are several key attributes found in businesses that open in a down economy. These entrepreneurs tend to be very committed to researching their idea thoroughly, select partners more carefully and weigh purchases more wisely than free spending business owners earlier in this decade. The established competition may have been weakened by the downturn, making entry into the market easier. Entrepreneurs who start up in a down economy understand fast change and take advantage of that to create new niches and market share.
A recent Inc. Magazine article bears this out. Carl Schramm, President of the entrepreneurship supportive Kauffman Foundation talks about great companies frequently get launched during a recession.
