Should Entrepreneurs be Thankful for the Recession?

Posted on 16. Jun, 2010 by in Business, Entrepreneurship

Entrepreneurs

It seems like for the past couple of years you can’t look at any list of the day’s news headlines without finding at least one story about the down economy, jobless rates, and all the challenges that go along with them.  And while the media is notoriously negative and loves to over-dramatize things, there’s no denying things have been rough for a lot of people.  There are some bright spots in the economy though.  One such ray of light can be found in the statistics about new business startups.  It seems that those with an entrepreneurial spark have turned hardship into opportunity in a big way.

The Kauffman Foundation, the world’s largest foundation devoted to entrepreneurship, concluded a study recently, the results of which might be surprising to some.  They found that in the US, in 2009, 558,000 new businesses were started per month by new and repeat entrepreneurs.  This represents the highest year on record, including 1999 – 2000, the peak technology startup boom years.

Kauffman Studdy

When you think about it, this shouldn’t be a big shocker.  When you read blogs and participate in communities that cater to entrepreneurial-minded people, you find that many people are actually excited about this time in our economic history.  In fact, a lot of leading entrepreneurs have been saying for a long time that we may very well look back on this period as a very positive shift in our economy.

Regardless of the overall economic climate, there has always been a large percentage of people who work at jobs, but have entrepreneurial dreams.  Even those who enjoy their jobs often think about what it would be like to own their own business, and some truly long to make it happen “some day.”  The problem is, people are prone to become complacent when things are going okay, so “some day” never comes.  Others have a “don’t rock the boat” mentality, and the fear of leaving a “secure” job to go it alone is just too scary.  Well, now a lot of people are waking up to the fact that there is no such thing as a secure job.  There are no guarantees.  So if working for someone else is a risk anyway, why not take a risk on self-employment?

Because of high unemployment rates, many people are finding themselves out of work, forced to do something other that what they’ve always done.  For thousands, this means starting a business will finally become a reality, and that’s a very good thing – for them, and for the economy.  Book after book on how to be successful preaches the need to get out of your comfort zone, and losing your job will yank you out of your comfort zone like nothing else.  Sure, it’s scary – even terrifying – at first, but the Kauffman numbers indicate that it’s motivating a lot of people to take action that they might not otherwise have taken.

So it seems that many entrepreneurs can indeed thank the recession.  And the rest of the country can say thank you right back to these entrepreneurs.  After all, new businesses mean spending – spending on things like office furniture, technology, marketing, and more.  And they also mean more jobs.  So the same entrepreneurs who are stepping up and finally making their own dreams come true will be the ones who help pull the economy out of the dumper.

One last point needs to be addressed: There are of course entrepreneurs who have suffered because of the recession, and it’s important that we acknowledge their struggles and support them.  One thing we know about entrepreneurs more than anything else is that they’re never down for long, so if you’re facing challenges right now because of the economy, do what you do best: persevere, adapt, and look to the future with the hope and determination that we know you have within you.

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20 Responses to “Should Entrepreneurs be Thankful for the Recession?”

  1. Martin

    16. Jun, 2010

    Great post. I really had to leave a comment after reading this! Keep it up!

    Reply to this comment

  2. teknoloji

    16. Jun, 2010

    I think recessions are a great way to start up new businesses. The data always proves that too

    Reply to this comment

  3. Credit Girl

    16. Jun, 2010

    Well this recession has certainly made me think about new ways to create a business. I guess in that respect the recession has helped me because I feel more motivated to think outside the box in terms of being an entrepreneur.

    Reply to this comment

  4. Anne

    16. Jun, 2010

    Recession is great to the entrepreneur.. it helps a lot to become firm to any circumtances that comes to there business.

    Reply to this comment

  5. Andrew @ Blogging Guide

    16. Jun, 2010

    We must turn recessions into opportunites. This is really a great and encouraging post.

    Reply to this comment

  6. K. Smith

    17. Jun, 2010

    This doesn’t surprise me at all. More new millionaires were created in the Great Depression than any other time in history thanks to innovative entrepreneurship. It just takes innovation and creativity to turn a positive into a negative as history has already shown us.

    Reply to this comment

  7. Valentine Belonwu

    17. Jun, 2010

    I think recessions can make entrepreneur famous though this depend on the kind of person. There are so many entrepreneurs out there who can’t stand a recessions or a struggle on their own but laidback. many people had suffered because of this but as for me,am still facing challenges but is not new to me again because this has made me to be strong and stay focus.

    Thanks,
    Val

    Reply to this comment

  8. JohnAtBlogtrepreneur

    17. Jun, 2010

    @K. Smith: Great point about the Great Depression. Turning adversity into opportunity can pay off in big ways, and obviously a lot of entrepreneurs did just that back then and are doing the same now.

    Reply to this comment

  9. Matida

    17. Jun, 2010

    “So if working for someone else is a risk anyway, why not take a risk on self-employment?” This is food for thought. If I should work, why not work for myself? Truly this is a very motivating article and I feel encouraged to join the ranks of other entrepreneurs.

    Reply to this comment

  10. Ally

    17. Jun, 2010

    It’s great to see that we’re in good company with others that aren’t discouraged. And the truth is there is no quick “trick” to being successful. It takes hard work, creativity, dedication, and the right strategies for success.

    Reply to this comment

  11. Scott

    17. Jun, 2010

    A true entrepreneur is recession-proof. As long as there is a market, entrepreneurs will find a niche in any economy.

    Reply to this comment

  12. JohnAtBlogtrepreneur

    18. Jun, 2010

    @Scott: Love the quote “A true entrepreneur is recession-proof!” Could not agree more. Thanks for commenting.

    Reply to this comment

  13. Samantha Milner

    19. Jun, 2010

    Hi guys,

    I can’t wait until the recession is over. So that I can get a full-time job and work there until my business start bringing in enough income.

    Kind regards,
    Sam
    X

    Reply to this comment

  14. Current Business

    21. Jun, 2010

    Recession is a great opportunity for any budding entrepreneur, particularly in the domain of the internet and emerging technologies.

    Reply to this comment

  15. season episode

    21. Jun, 2010

    Just shows you that recession is not always a bad thing. Money goes somewhere, it does not just disappear. If you know what you are doing then it will go your way. Somebody always profits from wars and recessions.

    Reply to this comment

  16. Corinne

    22. Jun, 2010

    Really great article Adam! Entrepreneurship is definitely booming in the economic recession. Perhaps it’s a blessing in disguise- getting laid off from your job so you have the opportunity to start something you love. Another benefit is that many startups are small companies, which do better than larger companies in bad economies, anyways. The recession may motivate people to start working off of their own ideas and become self-employed. It’s definitely worth giving it a shot!

    Reply to this comment

  17. Jamie Barclay

    24. Jun, 2010

    I think recession indeed pushed me to step out of my comfort zone. I learned to take the risk of having my own business. It’s not bad to be with a company who will give you a steady income but the question is until when? Unlike having your own business, you can do it on your own, manage your own time and you will be your own boss. As a businessman, I am thankful for the recession since it pushed me to start up my own business.

    Reply to this comment

  18. Mark Nasri

    28. Jun, 2010

    @Scott , you are right, finding niches is the best way to survive turbulent times.

    Reply to this comment

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