For people thinking of starting a business but hesitating because of the recession, you’re out of excuses: a new study by the Kauffman Foundation finds that about half the Fortune 500 and Inc. fastest-growing companies were founded during recessions. Here are some more eye-opening findings.
The study has three main findings:
1. Recessions and bear markets, while they bring pain and often lead to short-term declines in business formation, do not appear to have a significantly negative impact on the formation and survival of new businesses.While the Inc. list is dominated by tech-oriented startups, the study notes there will be service innovations in fields as old-school as retail and food service. I can attest to that: read Dane Carlson’s Business Opportunities blog for a mind-bending look at what entrepreneurs are coming up with every day of the week in industries as traditional as house cleaning and deck-building.
2. Well over half of the companies on the 2009 Fortune 500 list and just under half of the 2008 Inc. 500 list began during a recession or bear market.
3. Job creation from start-ups is much less volatile and sensitive to downturns than job creation in the entire economy.
Need more inspiration? Read Leah Grant’s blog (The New Business Mentor) and sign up for her newsletter. Check out Pam Slim’s recent book, Escape from Cubicle Nation. And if you’re considering a franchise, there’s a very good new book on that subject here.
Contributing blogger Mitch York coaches executives who are evolving into entrepreneurs. Find York — and his personal blog — at www.e2ecoaching.com. Follow MSPmentor via RSS; Facebook; Identi.ca; and Twitter. And sign up for our Enewsletter; Webcasts and Resource Center.