Business Class
J
You Can Go Your Own Way
Job security is a bit of an illusion these
days. Corporate giants have fallen. Lay-o;s, downsizing and furloughs are the
buzz in business. The new normal is to
have no sure thing. So it’s no wonder that
challenging economic times have given
birth to entrepreneurial capitalism. Suddenly, the notion of going solo doesn’t
sound so risky.
Starting a business in a recession may
seem to go against conventional thinking, but there are upsides to a downturn. For instance, because of the pool
of unemployed workers, finding talent
is easier and possibly less expensive,
and there may be more room to negotiate for o;ce space as well as other
goods and services. More than half the
companies on the 2009 Fortune 500
list were launched during a recession
or a bear market, as were nearly half
the firms on Inc. magazine’s 2008 list of
fastest-growing companies.
According to the Kau;man Foundation, recessions may create widespread
economic grief, but they also can encourage potential entrepreneurs, acting as
an extra spur to found a new company.
The entrepreneurial
spirit is alive and
well in these hard
economic times
BY SHERYL NANCE;NASH
ILLUSTRATION BY TIM TOMKINSON
Indeed, Kau;man’s study “The Coming
Entrepreneurship Boom” says the United
States may be on the cusp of an entrepreneurial boom. The factors fueling
this possibility include the shifting age
distribution of the country, the continued decline of lifetime employment, the
experience and tacit knowledge employees carry with them and the effects of
the 2008–2009 recession on established
sectors of the economy.
Overall, the rate of entrepreneurial
activity increased slightly between 2007
and 2008. An average of 0.32 percent of
the adult population created a new business each month—representing about
530,000 new businesses per month—
compared with 0.30 percent in 2007,
according to Kau;man.
Clearly, some are deciding to take the
entrepreneurial leap. Is it time to give in
to your entrepreneurial urge?
Investigate Your Dream
So, you have an idea for a product or
service. You think it’s great. Does anybody else? What will distinguish you
from the competition?
