While reading an op-ed piece recently by Robert J. Samuelson (link here), I was struck by the statistic he quoted regarding new job creation. All net job creation from 1980 to 2005 was from firms that were five years old or less (Haltiwanger, Jarmin, and Miranda). That is, new businessess create new jobs.
The upshot of this is that to fuel an economic recovery, we have to create more new businesses (small or large), which will in turn create new jobs for the economy. The historical fact is that we cannot wait for big business (or big government) to create jobs — the entrepreneur will be the driving force in job creation coming out of this recession. What types of businesses are needed? Everything from restaurants to tutoring services, home health care and hospitality, salons and barbershops. If there is a need in the marketplace for the product or service, then starting a business in that field is needed. If you have a skill, trade or talent, then you can, and perhaps should, own your own business and be a part of the entrepreneurial force bring recovery to this economy.
LaunchX.com. Start Here. Go Far.
I saw a post recently that said, “It’s easier to start a business than look for a job in a recession,” and it couldn’t be more true! Life still goes on during a recession. People buy new things, have to replace things that break, and still need services for their cars, homes, children, and themselves. Many luxury-type items are leaving shopping lists, but they are replaced with more practical things. And some businesses that provide the products and services that people need are going out of business, suffering from too much debt, poor management, or bad decisions. For every business that closes, an opportunity opens for you to start your business.
Starting a business in a recession provides a number of advantages:
1) If you need to hire employees, the high unemployment rate means that there are quality people available at lower costs than during a boom time.
2) Suppliers of wholesale products and the business services you need are feeling the pinch as well, so there are bargains and good deals to be made.
3) Businesses that close their doors provide opportunities to pick up commercial space and gently used equipment and fixtures at a bargain basement price.
4) Local communities want to increase economic activity, so they are motivated to help out new startups that will contribute to the local economy.
If you’ve been wanting to launch your business idea but haven’t made the decision to take the plunge…now is a great time. Start your business during the recession and join the ranks of over half of the Fortune 500 businesses — they were also started during an economic downturn!
Start Here. Go Far. LaunchX.com
