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Starting a Business Because of the Current Economy

Recently Congress decided not to extend paid unemployment benefits past the current 99 weeks. Although unemployment rates are improving slowly, the national unemployment rate was 9.6% in October 2010. This means some states are still experiencing double digit unemployment.

Many people haven’t waited for a job to create work. Whether you call them accidental or unintended entrepreneurs; they’re starting their own businesses.

Unemployed, But Not Out

Some unemployed people are taking advantage of their free time to turn hobbies or interests into businesses. The Internet has opened up a new world of business opportunities both for services and goods. Creating a home-based business, at least initially, helps keep the start-up costs down.

Research has found that some people show creative growth with crisis. These are the ones that may be more successful starting a business after losing a job. Although one-third of small businesses fail within two years, starting a business during a recession doesn’t change those odds.

Some people may not want to make the transition from employee to entrepreneur. If this is the case, the focus should be on getting a new position instead of split between a new business and job hunting.

New College Grads – Use Your Business Skills

Employment rates and starting salaries are significantly lower for new college graduates now than two years ago. Some have decided to go into business versus not doing anything.

It can be an idea time to break out on your own while living expenses are still low and energy levels high. Most college students have gotten used to living in shared spaces and eating cheaply.

Helpful steps to success include making connections including internships and part-time work . Companies might not be ready to hire full time employees but will pay for consultants or part time workers.

Resources for Starting a Business

No matter what your situation, there are a lot of resources available to help small business start-ups. The most well known resource may be the Small Business Administration. Be sure to check out the free online training courses with topics ranging from accounting to franchising.

SCORE provides small business mentoring, both online and in person. This non-profit organization has been helping small business owners for 46 years. Don’t forget there are local resources in your community most likely including service groups and the Chamber of Commerce that are small business friendly.

Tomorrow is the first annual Small Business Saturday to promote patronage, and ultimately success, of entrepreneurs. Let’s do our part to keep good businesses going, whether driven by unemployment or genius!

Photo Credit: pastaboy sleeps

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11 comments comments closed

  1. Running a business may be a good option for those unemployed individuals. A lot of people are starting a home-based in particular to take advantage of a specialized skill or something that they are passionate about.

    • Ken:good point Ken! I stumbled upon some freelance work when I was jump hunting a couple of years ago. It definitely wasn’t my plan, but I was able to get a decent income from using my skills.

  2. The greatest attribute recent college grads have is youth! With so much time ahead of them, they can start a business at 22, and if they stick with it for 10 years until 32, there is very little doubt in my mind they will do well!

    • Youth is an advantage for sure as they have more energy and time to try again if the first business isn’t successful.

  3. Such an informative and lovely topic you have here! Thank you so much for sharing it with us.

  4. Starting a business is like any project. You must start with a charter that defines your objectives and the series of steps to take in a specific amount of times toward some measurable milestones. That’s called a project plan under schedule. And you must have a very clear idea of the kinds of resources that you have available to execute on this project and a discipline to track them as you utilize them to reach your goals.

    When unemployed, the resources must be managed very carefully and the milestones must be extremely feasible to attain. But it’s all quite doable for a determined and thoughtful individual.