How Entrepreneurs Are Feeling in Downturn

Posted by Erdem OZKAN on 29 April, 2009

This item was filled under [ Entrepreneurship ]

You can’t go a day without mention of the “credit crunch” in the media. Everyday, new companies goes bust and the unemployment numbers are bleak. The unemployment rate hit 8.5 in US in March (8.1 in US in February).

Being an entrepreneur has always been a hard thing but in these tough times, it gets harder. Starting a new business or trying to expand a current business needs very much courage, when you look at around and see all those bust companies and unemployed people . We wondered and searched the net to learn how the entrepreneurs are handling the downturn.

Courage
A recent survey shows, 45% of entrepreneurs says “Yes”, 35% says “No” and 21% says “Not Sure” to the “Is now the time to launch a new business?” question. Also in the US,69% of entrepreneurs stated that they will continue with their business growth plans despite the prevailing economic climate. Even in downturn, brave entrepreneurs are going on their ways and launching new businesses.

Resistance

Fear is a fatal feeling in the downturn; but feeling of hope is very important to take risks. Some desperate entrepreneurs won’t be able to resist the downturn but 78% of entrepreneurs expect their business to survive this downturn.

Responsibility

Companies are squeezed by the recession and the surplus of some companies reduced and become insufficient to pay salaries and bills. Some entrepreneurs cut own pay to stay alive and not to cut jobs. This is unusual even for a recession but a very responsible attitude. What a business owner tells is, “All those small-business books say, ‘Pay yourself first.’ [But] not paying myself enabled me to keep a couple of other people around,” he says. “It’s not [the employees'] fault that I bet on growth.”

You can read these, if you want to read more about this topic:

How entrepreneurs are feeling@ CNNMoney

Entrepreneurs Cut Own Pay to Stay Alive@ Wall Street Journey