Recession Drives New Businesses

Three good articles last week on the economic downturn resulting in displaced workers starting businesses and freelancing.   

In Hard Times, Freelancers Turn to the Web, NY Times reporter Dan Fost discusses layoffs leading to a growing number of freelance workers and the various freelance marketplaces they turn to for business.  The article covers Elance, oDesk and several vertical industry sites that connect freelancers and independent workers with companies looking to hire contractors. 

Weary of Looking for Work, Some Create Their Own, also from the NY Times, talks about a surge of interest in entrepreneurship due to the economic downturn. 

And over at BusinessWeek, John Tozzi's After Layoffs, Starting a Business From Scratch reports on laid off workers starting small businesses. 

The BusinessWeek article also has a great slide show with 29 examples of displaced workers - referred to as "rebounders" - who have started a new business. 

We've posted in the past on recession leading to higher rates of small business formation. 

Comments

[Chris]

Interesting, we did a similar piece.

http://www.referralkey.com/small-business-blog/

[George Tallabas]

One of the benefits of a recession or depression is that it breeds creativity! Great post.

[Boise Relocation]

This is interesting, because, just coming out of high school and finding no work in my city for an unexperienced graduate, I was compelled to start my own company as well, which is actually currently picking up. To me, the recession was a bit of a blessing, providing me with the motivation to create my own work.

[Avery Gerner]

The recession brought about the fall of large companies and conglomerates. But it also opened the opportunity for new businesses to rise up and take the stage. The teetering economic balance left businesses looking for ways to trim down on costs, while maintaining the same level of productivity. Suddenly, vertical industry sites have become an avenue for companies to outsource their work to freelance contractors. The prospect of working and earning money in the convenience of a home is very inviting. Riding along with that is the chance for companies to save up on labor money and keep the ship afloat.