There is no doubt that we are now in the throes of a recession. With 150,000 jobs shed in June and July, and a further 58,000 in August, workers will be considering their options for the future carefully. However, tough economic climates can enable and encourage entrepreneurs to start new business and be in control of their own destinies. It can be a baptism of fire, but if your new business can survive, it will thrive when the economy recovers.
Success stories of businesses which started in a financial crisis include Uber and Airbnb, which were both set up during the global financial crisis of 2007-09.
Starting a new business at any time is difficult. Economists have analysed the ‘right time’ in an economic cycle to launch a new business, but it’s not necessarily easy to pinpoint. It will really just come down to whether the timing is right for you and your lifestyle. According to the Centre for Entrepreneurs, 50% more businesses were created in June 2020, than in June 2019 and July saw a new record of 81,000 businesses registered.
In the start-up world, there can be an upside to an economic downturn.
ASC have 50 years of enabling start-up companies secure finance, even in a recession, because our expertise will focus on getting you the right finance from the right bank or lending institution, so you can focus on your business.