NFIB

More Entrepreneurs Start Small Businesses During Weak Economies
10/08/2002

For the past 50 years, more entrepreneurs have started small businesses during recessions and economic downturns than in booming economies, the Wall Street Journal reports.

The higher unemployment rates that typically go with recessions seem to be a large factor in this trend. The entrepreneurs may be out of work or dissatisfied with the money they are making when they decide to start their businesses. Also, they may be encouraged by the larger pool of job seekers from which to select employees.

"During the good times, you have a paycheck and things are going well, so you don't question what you want," Garrett Sutton, the author of Own Your Own Corporation, told the WSJ. "But when there's the possibility of layoffs, you may start thinking about doing something else."