Many businesses start up during economic downturns

Wednesday 2 January 2013

Just because the economy remains downbeat, it does not mean it is a bad time to start a business, it has been claimed.

Writing for USA Today, Regina Lewis said there are "a lot of factors" involved in starting a new business and timing can be everything.

She suggested that, very often, the best time to put your business plans into action is now - the sooner the possible.

Ms Lewis explained that, historically, more businesses have been started during recessions than in times of prosperity.

There are a number of reasons why this may be the case, including the fact that a down economy can mean a lower cost base.

She noted that business overheads such as rent, capital and labour may be more affordable than during periods of relative prosperity.

According to Ms Lewis, the key factor for people setting up their own company is resilience,

"Most experts agree there is never really a right or wrong time to start a business, you've got to make your own good luck," she noted.

Figures from Companies House reveal that the number of businesses active in the UK has continued to rise since the end of the 2008-09 recession.

Posted by Dan Smith