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The recession should not damp new business ideas, the Institute of Chartered Accountants said today.
The trade body said that the Walt Disney Corporation, Hewlett-Packard and Microsoft all took the risk to start up during an economic downturn, and it views the current recession as an opportunity for business growth.
Ian Strange, the institute's London Regional Director, said: “Periods of recession can be one of the best times to start a small business. Established businesses may also see opportunities for expansion. If you give a good customer experience during a recession, those customers will remember you afterwards.”
Higher numbers of businesses collapsing into administration means some sectors have far fewer competitors, and talented staff are more easily available, the institute added.
Office and retail space is also cheaper, and firms learn how to keep costs to a minimum. Strange said: “If a new company can survive during a recession when market conditions are especially tough, it can turn itself into an even more successful business when the economy improves.”
