Look to Small Biz to Lead the Economic Recovery
You’d think the small business market must shrink in a recession. But you’d be wrong.
And it can be a fatal mistake, according to Warrillow & Co. researchers.
The net number of small businesses actually grows during a downturn. The number of start-ups actually increases compared with previous years.
The reason: Trouble in the corporate sector tends to serve as a launching pad for would-be entrepreneurs.
Where do you think all the smart, aggressive, educated, A-type personalities at Lehman Brothers, Goldman Sachs, and AIG are going?  Many start their own businesses.
In fact, the small business market offers steady growth and stability through a recession. Especially when compared to consumer markets. Consumer spending surges in good times, and then swing wildly during recessions.
Year-over-year peak-to-trough changes in the small business growth rate are less than a third of the drops seen in discretionary consumer spending. The small business market is not only an important source of diversification for enterprise companies, but also a relative safe haven for investment during recessions.
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