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Entrepreneurs combat recession
While some might think it unwise to take risks in the current economic gloom, there are a few who disagree. Kipp takes a look at the power of the entrepreneur.
October 5, 2010 4:16 by Eva Fernandes
The big film of the moment, The Social Network, focuses on the risks, complications and possible breakdowns associated with the ventures of entrepreneur Mark Zuckerberg. And yet the overwhelming success of the ubiquitous Facebook is enough to make one’s heart race and wonder at the possibility of taking the plunge and starting your own business. But, then again, the current economic situation is enough to frighten even the bravest of us into collecting our savings in a pile and sitting on it.
Or maybe not. Recent research shows that entrepreneurship is on the increase since the recession. A study from the Kauffman Foundation, a prominent think tank specialized in the field of entrepreneurship, found that in 2009 an average of 320 out of 100,000 adults created a new business each month last year even as the recession took hold (a significant increase from previous years). Economists say that it is very common for people to turn to entrepreneurship in times of a recession, in particular because finding a job maybe daunting, frustrating or just not possible.
In fact, it is entrepreneurial ventures that are catalysts to recovery during a recession, as they provide niche services and employment opportunities. Gulf News’ Hisham Wyne says entrepreneurs are “the lifeblood of the new economy (…) startups are often responsible for catalyzing (…) pecuniary well-being.” He goes on to say that, “Despite the cards being sometimes stacked against them, several young entrepreneurs in Dubai have started viable businesses through dint of competence and persistence.”