Reasons For Increased Small Business Start-up In A Recession

Firstly I want to apologize for taking so long to make this post. The explanation is basically an excellent one, since September there was a surge in the number of folk who have contacted me at Digital Ark, to inquire about getting a domain. Fortunately almost all of the discussions have resulted in new clients, the main reason being our pay monthly managed site service that allows a new small enterprise to get online with a low monthly fixed fee.

This got me thinking. If you read any newspaper, turn on the Television or listen to the radio, all you’ll hear is how the UK, Europe and the US are heading for a double dip recession. I don’t know about you but I find this very depressing. Therefore , why, given this back drop are so many folk looking to start a business?

I have some thoughts.

1. Loss of job

In these economic times there are plenty of job cuts. Therefore , there are folks who have wanted to start a business but were afraid of giving up a good income. Losing their job has decided for them so they're now taking the opportunity to pursue their dream.

2. Require more income

As the household budgets are getting squeezed, a few individuals are in need of extra earnings to make ends meet. A method to do this is by setting up a business on the side to generate earnings. Here is where the Net is so powerful, the price of entry and speed to market is so fast.

3. Similar businesses going bankrupt

The fact that times are hard means that it presents possibilities for new entrants into a market place who have lower overheads, better pricing, more flexible to adjust to market needs. This allows for a brand new business to gain market share very swiftly, especially as clients are looking out for a good deal.

A fact to close on. In the recessions of the 90s and early 00s, both saw an upturn in new firms and many went on to do very , very well.

So if you've been thinking about starting your business, now’s the time.

Simon Wilkinson is the founder of Digital Ark, Colchester Website Design, Web Hosting, Small Business SEO and local mobile search. Services include a pay monthly web site service.