“There is no security on this Earth; there is only opportunity.”
Coincidentally, the above quotation—attributed to Douglas MacArthur, a former General of the Army—expresses how optimistic entrepreneurs often direct their lives.
As the U.S. unemployment rate continues to rise (reported at 9.7 percent, as of Sept. 2009), many unemployed Americans are considering alternatives such as self-employment or a start-up. Many are struggling and wonder if good times will ever come back.
Heads up! Here is some positive and encouraging news.
A Kauffman Foundation study press release, dated June 9, 2009, states that, “…more than half the companies on the 2009 Fortune 500 list were launched during a recession or a bear market…” Here is the entire study, also dated June 9, 2009, “The Economic Future Just Happened.”
I also read in The Wall Street Journal, Small Business section, that Bo Fishback, a vice president of entrepreneurship for the Ewing Marion Kauffman Foundation, predicts that a lot of businesses will be started by people who otherwise would not have started them (in better times).
All that said, obviously, not everyone possesses an entrepreneurial fortitude. Launching one’s own business or becoming self-employed can be intimidating, especially in a down economy.
What is a remedy for overcoming intimidation in order to make decisions and move forward?
The answer usually lies in collecting information and staying informed. And, because HRTools.com serves these markets (entrepreneurs, the self-employed and small to medium-sized businesses), I decided to do a little research.
To that end, here follows a quick summary of what I learned. I’m sure you might find more thought-provoking stories out there, too:
- Ethnic malls have been flourishing during the recession. According to an online article posted on Aug. 31, 2009, by the Christian Science Monitor and titled “Ethnic malls are buzzing”—malls that cater to specific ethnic niches have “skimped the slump.” While traditional malls have been struggling since the recession began, with vacancies hitting an 8.4 percent all-time high: “Part of ethnic malls’ secret is that their niche markets are more reliable and well protected in a recession than mainstream ones.” Notably, in comparison to traditional malls, most ethnic malls have seen an increase in sales since the recession began. Ethnic populations in the U.S. are also growing in size, and as a major university professor noted—most ethnic stores do not sell luxury items (diamond necklaces, etc.)—they sell necessities.
- Direct sales opportunities are increasing, particularly in industries that historically are recession proof such as cosmetics. Perhaps you’ve heard of the “Leading Lipstick Indicator Theory” a term coined by Leonard Lauder, the chairman of the board at Estee Lauder. This theory helps explain that during tough economic times, consumers tend to purchase less expensive items (such as lipstick) as a means to boost morale. For example, according to numerous reports, lipstick sales more than doubled in the months following the 9/11 attacks. According to a May 15, 2009, USA TODAY online article, cosmetic companies like Avon and Mary Kay have significantly stepped up their recruiting efforts during the past year. This article includes a quote from a part-time working Avon rep. She explained that after her full-time hours as an office manager were cut, she decided to give direct sales a try. With direct selling, she likes the fact that she is more in control of her own future.
- Entrepreneurs are taking annoying tasks/problems and turning them into innovative ideas. For example, I recently read about an Air Force veteran who persistently thought there has to be a better way to empty the trash. Because this process bugged him for so many years, both at work and at home, he developed a biodegradable trash bag dispensing system, Bag Ups, which are marketed to TV audiences.
- An unpredictable 21st century world is serving as catalyst for solving the “threat du jour.” For example, as reported online by the Atlanta Business Chronicle on Sept. 4, 2009, start-up Preparis, Inc. was started by two young entrepreneurs. Their Web-based platform is designed to prepare businesses and their employees for more than 200 threats and disasters ranging from natural disasters to terrorist strikes. The company’s Web site home page is now geared up for the swine flu (H1N1) virus and helping employers prepare. Hmmm, helping businesses prepare for the worst—talk about seizing an opportunity!
- Entrepreneurs are volunteering services as a way to market themselves. An online article titled, “Pro Bono Work Helps Firms Fight Economic Slump,” and posted at The Wall Street Journal Web site reports that small businesses are taking their cues from the unemployed. In other words, what better way to test out an idea for starting a business than to test its potential. Pro bono work serves one of those win-wins for both the volunteer and the charity or nonprofit. Also, as they say, success in business is greatly determined by an ability to foster good customer relations and remain visible in the community.
I started with a quote, and I’ll end with this Ralph Waldo Emerson quote: “America is another name for opportunity.”