Saturday, April 10, 2010

Why a Bad Economy Is the Best Time to Start a Business

An assortment of United States coins, includin...Image via Wikipedia
Adam L. Penenberg penned a guest post for TechCrunch today called: Why a Bad Economy Is the Best Time to Start a Business.

This is an interesting topic because the number suggest that this is true.

The main thinking is that the dearth of venture capital makes companies be smarter with their financies, setting them up to better handle cyclical changes in the economy.

I call BS, though.

I don't think that's the case. And I don't think a bad economy is the best time to start a business.

Th reason for the numbers is that during a down economy, more people are being laid off or taking pay cuts from large companies and grow more disenfranchised with the whims of corporate America.

For them, there is less risk leaving in a bad economy because they're not giving up plush jobs. They've been pushed around and are now ready to take control.

So, it's not that a bad economy is better. There are just more people striking out on their own.

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