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Every single day, I hear someone carrying on about how awful our economy is. Many blame it for them not having a job, not affording their mortgage, and not being able to afford necessities. News flash: the economy is only bad for those playing the victim. Our current market is great for self-starting, innovative entrepreneurs.
This isn't breaking news, but it's often forgotten. The media hypes up any small problem in our economy and uses our market as a scapegoat for common issues. If people took the time and effort to look past our dramatic media's claims, then they would realize that an economic downfall isn't bad news for everyone.
In fact, according to a study performed by the Kauffman Foundation in 2009, over half of the companies ranked on the Fortune 500 list began during a recession, such as Facebook, Microsoft, Disney, and many more. Additionally, this study found that about half of the companies listed as America's fastest-growing companies were also started during hard economic times. These statistics prove that a recession can be the start of a successful company.
Recessions have the knack of separating the avant-garde producers from the unmotivated employees. Economic downfalls set a clean slate for entrepreneurs by cutting costs and reducing competition. These circumstances provide perfect opportunities to build sturdy foundations of long-lasting businesses. However, only the most enthusiastic entrepreneurs are able to take advantage of hard times.
A steady trend in economic recessions support the fact that economic hardships are the seed to increased entrepreneurship. Robert W. Fairlie, a professor from The University of California Santa Cruz, supported that a tough economy makes way for innovators to open up their own businesses in his study "How the Great Recession Spurred Entrepreneurship." Thus, if you have the ambition to make your own way, a recession is the perfect opportunity.
Though costs are lower, only those who think creatively and frugally are the most successful during difficult markets. Being careful with money will maximize your profit always, especially during recessions. These wonderful habits will only set your business up for long-time success. Besides, the market will improve eventually so you'll be able to branch out more once your company flourishes as the economy does.
Not only are these times best for setting the terms and kicking business aspects off, but they are also good for scrounging the job market to find talented employees. Hardworking and skilled workers are out looking for replacements jobs or fresh starts, and these can be vital assets for your upcoming business. With higher unemployment rates, the potential employee pool is vastly larger.
I've personally found that creating a business in hard economic times is very successful. I started my company Restaurantware in 2010, while our economy was still in the midst of an economic recession. With unemployment rates continuing to skyrocket, I wasn't letting the bad market get the best of me. Instead, I set out to answer a specific need for the restaurant community - eco-friendly, yet affordable, tableware. With the head start in 2010, my company is still growing at phenomenal rates. If more businesses followed this path, then our economy will improve over time.
The best way to get out of an economic recession is to create change, and new businesses are the perfect tool in accomplishing this. Entrepreneurs are the main asset in stabilizing an economy by crafting businesses, creating jobs, increasing competition, bringing in new income, creating change, and supporting communities. Thus, poor economic markets are the perfect situation to improve our markets by establishing new businesses.
Only the unmotivated 9-5ers sink in economic hardship. A changing economy requires flexible business, and this does not mean that employees can just do enough to skim-by and expect to survive. The same people who don't want to put in the efforts to improve their situations are the ones who play victim to a struggling economy.
So, instead of complaining about our current market situation, be an entrepreneur. Innovation is the key to success, and this requires hard work and long hours. Everyone should work for their accomplishments and not expect for our economy to reward you for staying in your comfort zone.