This is not necessarily as daft as it might sound. Many successful businesses have been started in past recessions. There are various reasons why starting up a business when the future looks bleak can be a good idea. First, not everybody is doing it, so there might be less competition. Second, people who have been in a market for a while might collapse under the strain, creating an opening. Third, resources, such as premises and raw materials, can be cheaper than in boom times. Fourth, it might be easier to recruit the people you want if there are fewer opportunities. And the list goes on.
However, sound as these reasons are, they do not mean that it is easy to start a business, particularly for somebody who has previously been in a large business or have not been in business at all. What people starting out tend to need, apart from money, is advice. Traditionally, this has come – along with the bank loan – from the bank manager. But with banks currently more focused on sorting out their own problems than anybody else's, such advice – like the loan – is likely to be unforthcoming. So, where should the budding entrepreneur turn?
