The amount of people who are affected in some way by the global economic crisis is getting bigger by the day. So many people being let go from down-sized or bankrupt businesses; it is painful to watch. Given that the job market has shrunk considerably, it's not like these people can easily get another job either. So if you can't get a job, then why not try and take advantage of it? Why not start your own business?
An interesting and extremely encouraging innovation has been the number of entrepreneurs that have sprouted up in the past few years. These small businesses, primarily started by people who have been made redundant by the financial crisis are trying to take advantage of the recession. Governments have recognized this trend and have started aggressively supporting innovation particularly in the technology industry.
Reasons to Become an Entrepreneur
- You may have the opportunity to get involved in something that you are passionate about, from the early concept, design and creation, to the sales, business operations and customer response.
- You no longer have a boss, which in itself is enough reason for many people I’m sure.
- Owning your own business brings great satisfaction
- Many successful entrepreneurs will choose to give back to the world or their own community through financial donations or constructing a building of some sort for example.
- The most important of course, if everything works out then the profits you make are all your own!
Becoming an entrepreneur during a recession means finding a gap in the market that can easily be filled during a difficult economic climate. Typically speaking, people spend less during a recession, so it is important to create a product or service that will be required and desired during any economic environment. The bottom line is that it needs to be cheap and effective. It needs to wow investors and the public.
Of course many entrepreneurs are mainly PR men. You do not need to be a genius yourself. There are many ways that you can license other innovations from people, such as University professors. This method of entrepreneurship is known as Technology Transfer. That way you get a business partner but you also get yourself a good product.
Not everyone struggling in the recession can simply turn their hands at becoming an entrepreneur. You need to have a certain confidence and swagger about yourself. If you go into a meeting with investors you need to be able to make them want to invest in your product and not just crack up on stage.
Benefits of becoming an Entrepreneur during a recession
During a recession is probably the best time to become an entrepreneur, a surprising statement to make I know, but there is a reason why I say this. There are a huge number of government subsidies which you can take advantage of in 'hard times' and many of these relate to helping people start up their own business.
Business Incubators and Accelerators (both government funded and private) offer things such as free office space, internet access, expert advice, access to funding and introductions with investors for budding entrepreneurs. These resources can be vital to an entrepreneur and without them your business may never get off the ground.
Of course it is not just all clear sailing as there can be immense financial risks involved with any business you start yourself. You can risk potential bankruptcy, but this is probably one of the only ways that you will be able to take advantage of the recession. Just make sure that you are an entrepreneurial person and willing to take it the whole way or else you may just end up worse off! Be committed, be a risk taker, and be prepared for long hours and sleepless nights to make it.