2010 is Year of the Entrepreneur

Wednesday, 24 March 2010 00:00
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Post written by:

Ashleigh Sottile

I know it sounds crazy in an economic time that is being compared to the Great Depression and unemployment rates have reached as high as 11.4% to be thinking about starting a business. Oddly enough disruptive economic times are often the best conditions to start new businesses of the future. Two great examples are Hewlett-Packard and Microsoft. Hewlett-Packard was founded in 1939 in the midst of the Great Depression and Microsoft launched in the recession of the 1970’s .

 

Prediction: Entrepreneurs discovering new ways to serve and bringing better products to the marketplace will become the work -horses that will pull the United States out of recession.

 

The reasons why:

 

  1. In a slowing economy companies are forced to downsize driving very talented people out of a job. Now more than ever, more qualified professionals are out of work leaving them forced to take jobs paying less. So now there is an opportunity to secure very talented employees making  solid growth in your new business, at affordable prices.
  2. Businesses will be getting back to the mom- and-pop businesses in terms of marketing. Small businesses will rely more on “local marketing” and word of mouth for exposure and growth making it easier and less expensive to get exposure.
  3. Over the past years as the economy has taken a dive, entrepreneurs have learned a hard lesson about spending cautiously. They will be more careful than ever about the debt they carry.
  4. In economic downturns basic operating costs tend to be lower teaching entrepreneurs how to launch a new business with very little capital.
  5. The competition between businesses opens up. Since large businesses are focused more on rationalizing operations and weaker players are going out of business.

 

Any entrepreneur or investor will find favorable conditions in the beneficial trends in lower costs, labor and competition. That is why those who put management talent and risk capital to work in the year of the entrepreneur are likely to be rewarded handsomely creating unplanned benefits of innovation, job creation and economic growth. So a piece of advice to the entrepreneurs and investors- Get ready, be smart, be resourceful, be creative but above all be positive and ready to take it all on in 2010.