Cheer Up. Even a Recession Has a Silver Lining
A recession is a period of reduced economic activity. An economy that was once booming experiences a slowdown and the effects trickle down to everyone, from business owners to consumers picking up their weekly groceries.
Recessions can feel awful as so many companies struggle to stay afloat. People lose jobs, wages fall, homes and stock lose value, lost opportunities, and the government starts borrowing money to stabilize the economy.
A recession can also provide significant benefits for individuals or economies, even if the process is painful.
History tells us that there have been and always will likely be recessions. Still history tells us that recessions are a good time to start a new business. There is a long list of major companies that were born during a recession. Airbnb, Disney, General Electric, Microsoft, Fedex, Hyatt Corp., Sports Illustrated, CNN, and half of all the companies on the Fortune 500 list have claimed to have started during a recession.
During economic downturns, new upstart entrepreneurs full of hope, vigor and promise are born for various reasons. Displaced employees get discouraged by the tight job market and decide to embark on something of their own. Others are frustrated after their hours have been cut and decide they want to work on something they control. Other individuals have a great idea or a new concept that their current employer won't or can't initiate due to the company's tight cash flow, so they decide to take a leap with themselves.
Suppose you can figure out how to attract customers in a tight market. In that case, there are many reasons to make the jump to entrepreneurship and self-employment. The competition will be weaker during a recession. Competitors' inventories are low, their advertising budgets have been slashed and they have cut back on payroll. All these factors make it a good environment for startups.
If you are one of those new or budding entrepreneurs, recessions can be an excellent time for you to make a move. Be aware there are a lot of professionals out there who can help you along the way to make it happen.