Showing posts with label Kauffman Study. Show all posts
Showing posts with label Kauffman Study. Show all posts

Monday, January 11, 2010

What do Microsoft, General Electric, Hewlett Packard and Hyatt all have in common?

Answer - All of these companies were launched in a recession or a bear market. In fact, according to a recent CFO magazine study , more than half of the 2009 Fortune 500 companies exist because an entrepreneur launched them out of seeing an opportunity or out of economic necessity - all during hard times like today. Further, almost half of the 2008 Inc 500 companies had similar recession or bear market origins.

Why is this so? A few reasons are:
  • During times of economic uncertainty, many larger companies deal with layoffs and a worried workforce. This can take the focus away from what should be done the most during times like this, which is focusing on customer service and keeping clientele.
  • Recessions force lower costs across almost all industries and can make it easier for a smaller, startup company to compete for market share that larger companies can not or choose not to embrace.
  • High quality talent becomes more plentiful and often at a lower cost, making it easier to hire key team members.
  • Bigger companies can not react as quickly to opportunity, providing smaller, more nimble companies a competitive edge.
The Kauffman Foundation also has a study, "The Economic Future Just Happened" that also shows that recessions and bear markets can actually be very productive times for entrepreneurship in this country.

So don't let 2010 and a shaky economy hold you down. Register now for Think Big Kansas City, coming up March 3rd, 2010!