The Upside of a Down Economy
Entrepreneurs who survive will end up "lean and super efficient with less competition"
Microsoft, Apple, Genentech, Skype …The list goes on and on of successful companies that started up during economic down times such as the mid1970s recession or the dot.com crash almost a decade ago.
Today, we are in the midst of one of the worst economic crises in history with no immediate end in sight. Venture capital firms like Sequoia Capital and prominent angel investors such as Ron Conway are cautioning entrepreneurs to hold onto their money. However, good ideas are still getting funded and some businesses are even reporting surprising growth.
What separates successful start-ups from those that fail during economic downturns? Wharton Entrepreneurial Programs co-director and Professor of Management Raffi Amit says the key to survival is the ability to quickly adapt. "The market has changed in a profound way and entrepreneurs and small business owners need to revisit their business plans and re-budget to cut expenses drastically to be in line with projected revenues, which will be lower," he says. Read full story:
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